Modes of resolution of a debtor's insolvency

Abstract

The methods of solving the debtor' s insolvency using the "sanitation" principle It has been 5 years since the Czech Insolvency Act was enacted. Therefore is it a good opportunity to summarize the pros and cons of the current situation in this branch of law. The Insolvency Act introduced the concept of two approaches to dealing with the debtor' s insolvency which are new in the Czech legal system: the restructuring and the discharge. Both of them share the "sanitation" principle which enables the debtor to continue their existence after having adopted certain measures. The thesis consists of five major chapters. First section provides the basic explanation of the concept of insolvency and the reasons for the special treatment for the bankruptcy of those who have more creditors. There is also a brief description of the insolvency' s procedure. The second chapter deals with the restructuring, which is the method of solving the insolvency of big companies (entrepreneurs). The third chapter focuses on discharge which is intended for those who are not engaged in business activities (non-entrepreneurs) and which enables them to get rid of their debts. The discharge can be performed in two modes: either by the liquidation of the assets or through the performance of the payment calendar. The chapter four and..