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Greater protection for minor debtors

  • Czech Republic
  • Other

30-06-2021

From 1 July, the rules for debt recovery for minor debtors will fundamentally change. This should give them an easier start to adult life, unburdened by executions they did not cause.

What does the amendment bring?

The following points are crucial:

  • It will be possible to recover the monetary debts of minors only up to the amount of property they acquired before gaining full legal capacity. What they earn or acquire after their 18th birthday cannot be affected. An exception is the debts of minors related to their business, which are not protected
  • The parent is liable for the monetary debts of minors where the parent acted on behalf of the minor or gave their consent to such conduct. If the parent pays the debt for the minor, they cannot subsequently recover the debt themselves, as in the case of ordinary liability
  • Minors under the age of 15 cannot be bound by a contractual penalty
  • Modification of the rules for compensation for damage caused by minors under the age of 13 and greater liability of parents

What to watch out for

If you are a parent, be more careful when representing a minor. If you are entering into a contract with a minor, keep in mind that you cannot recover all debts from them. Under the transitional provision, some rules even apply to the debts of minors incurred before 1 July.

 

Ondřej Šudoma, Senior Associate

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