Raising claims in insolvency proceedings

Raising claims in insolvency proceedings Quality insolvency law of economic entities is in addition to civil and commercial law one of the pillars of a developed market economy. In case the insolvency law allows relatively simple application of claims and is a guarantee of the recovery of substantial amount, it can positively influence business environment as well as enhance legal certainty of legal relations. In this area, Czech Republic with its previous legislation represented by Act No. 328/1991 Coll., on Bankruptcy and Settlement despite its numerous amendments, lagged behind its neighboring countries like Slovak Republic e.g., where this rule has been replaced by Act No. 7 / 2005 Coll., on Bankruptcy and Restructuring already since July 1st 2005. Important change came with the Act No. 182/2006 Coll., on Insolvency and Methods of its Solution, which is a complex recodification effective from January 1st 2008. Besides the overall modernization its primary aim was to relieve the shortcomings of prior legal form that have been visible mainly in very weak position of creditors in the proceedings, its slowness and low level of satisfaction of creditors' claims. The effectiveness of the new rules and their targets have been largely achieved after almost two years. The influence of creditors asserting their..