AmCham Initiates Amendment to the New Bankruptcy Act

AmCham has identified a very problematic provision of the new Bankruptcy Act that is to come in force as of January 1, 2008. If a definition of indebtedness stays unchanged, then as of January 1, everyone whose debts - irrelevant whether due or undue yet - exceeds overall value of their assets, is considered bankrupt. On November 30, Amcham held a roundtable on the issue hosting Deputy Justice Minister, Czech National Bank representatives, judges, drafters of the act, banks and attorney offices. The conclusions are: 1) to initiate a quick amendment to the act, 2) to instruct judges, through vice-chairs of courts, how to proceed before the amendment is passed, and 2) to use the AmCham discussion platform to brainstorm other potentially problematic issues of the Act. The next session of the group is to take place in January. To join the group, contact Iveta Havlová at law@amcham.cz.