Debt Collection Agency Czech Republic: Elektronický Platební Rozkaz & EU Tools
Debt Collection Agency Czech Republic: Electronic Payment Orders and Private Executors
The Czech System
The Czech Republic combines EU enforcement instruments with a domestic system built around two powerful creditor tools: the elektronický platební rozkaz (electronic payment order) and the soukromý exekutor (private executor). Together, they create one of Central Europe's most efficient debt collection frameworks.
For EU creditors, Czech EU membership means European Payment Orders and European Account Preservation Orders apply. But the domestic electronic payment order is often faster — and the private executor system provides enforcement capability that many Western European countries lack.
The Collection Process
Phase 1 — Výzva k úhradě (formal demand). Written demand in Czech citing the contract, outstanding amount, and úrok z prodlení (default interest). Czech statutory commercial interest: repo rate set by the Czech National Bank + 8 percentage points (under §1970 of the Civil Code). The demand must provide a reasonable payment deadline — typically 14-30 days.
Phase 2 — Amicable collection. Czech business culture is pragmatic and documentation-oriented. Prague concentrates approximately 25% of Czech GDP, with Brno, Ostrava, and Plzeň forming secondary commercial centres. Recovery rates for claims under 12 months: approximately 55-65%.
Phase 3 — Elektronický platební rozkaz. The electronic payment order is filed online at the district court (okresní soud). For claims up to CZK 1 million (approximately €40,000), the court issues the order without a hearing — typically within 2-4 weeks. The debtor has 15 days to file an odpor (objection). No objection? The order becomes enforceable.
Phase 4 — Exekuce (execution). Czech private executors (soukromí exekutoři) are among the most effective enforcement agents in the EU. The creditor chooses the executor, who then has broad powers: bank account seizure, salary garnishment, movable and immovable property seizure, and business share attachment. The executor is motivated by success fees — creating alignment between the creditor's and executor's interests.
The Executor Advantage
Unlike many EU countries where enforcement is handled by court officials with limited incentives, Czech private executors operate as independent professionals with a financial interest in successful recovery. An executor who seizes the debtor's bank account, vehicle, and real property simultaneously creates maximum pressure for immediate payment — and creditors see results within weeks of engaging enforcement.
Key Parameters
Statute of limitations: 3 years for commercial claims (§629 Civil Code), extendable to 15 years if acknowledged by the debtor.
Currency: Czech koruna (CZK). Not in the Eurozone — foreign currency claims require conversion.
The Czech Republic's combination of electronic payment orders and motivated private executors makes it one of Central Europe's most creditor-friendly jurisdictions for documented B2B claims.
