Repayment Plan as Essential Instrument in Personal Bankruptcy in the Czech Republic

Abstract

It is possible to undergo a personal bankruptcy in the Czech Republic since 2008. The number of personal bankruptcies has been steadily rising in the country since the arrival of economic crisis in 2009. Because of that it is necessary to examine individuals who had undergone personal bankruptcy and by whom has been the process of personal bankruptcy already completed. Submitted research concerns debt relief of individuals who applied for personal bankruptcy in the time period between 1.1.2008 and 31.12.2011 and whose process of personal bankruptcy was declared as successfully completed until the first quarter of 2015. Until the end of the research this applied to 1.352 individuals. The main aim of the research was to find out the percentage of debt repaid to creditors by each individual with regard to their age. The research has been focused on dividing the sample of 1.352 individuals to different categories according to their age, source of their income and amount of their income. Particular debtors who applied for a personal bankruptcy, have been divided into four age groups. Each individual was afterwards analysed for the source of their income, from which the debts were repaid. Possible sources of income were divided into eleven groups. The researched sample of individuals was consequently divided according to the overall amount of their debt into five categories.

Keywords

• Personal bankruptcy
• debt relief
• debtor
• creditor
• repayment plan
• amount of debt
• claim of creditor
• K35
• K36