Merciful summer in just two weeks: Will the state forgive you?

A unique event called Merciful Summer concerns about 300,000 people who have execution at one of the public institutions. It is enough for the debtors to pay the original debt (outstanding principal) and the costs of execution in the amount of CZK 908. “The state will then forgive them all interest, late fees, recovery costs and other costs that increased the debt,” explains Radek Hábl from the Institute of Prevention and Solution of Over-indebtedness. Diary Aha! brings answers to the most frequently asked questions about this unique event.

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1) Does Merciful Summer apply to all debts?

No. Applies only to debts to the state, municipality or company in which the state has a majority shareholding and in which execution is conducted by a private executor (eg debts for renting municipal or city flats, debts for health insurance, fines for undeclared driving, debt against ČEZ or hospital fees). However, some private institutions, such as banks or some credit companies, also volunteered.

2) Can I use it for debts at the tax office?

No. It is not possible to use it for debts in execution, which are enforced by eg the Tax Office, the Czech Social Security Administration or the Customs Administration, because these are so-called administrative and tax executions (eg debts due to tax arrears or fines from the Czech Police), which they are excluded from the Merciful Summer.

3) For which companies is it possible to use the event?

The event applies to foreclosures at companies such as ČEZ, Pražská plynárenská, Pražská energetika, Mostecká bytová, etc. Czech Television and health insurance companies. However, Česká spořitelna, Air Bank or Home Credit, for example, also took part.

Tip Aha !: You can find the complete list at nedluzimstatu.cz/ milostive-leto

4) Who can apply for debt relief?

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Anyone who has a debt with a public institution and already has an execution, which is handled by a private executor. However, it cannot be used by people who are insolvent due to this debt.

5) How much will I pay in total?

You will pay the principal of your debt (ie the original debt) and the fee associated with the costs of terminating the execution in the amount of CZK 908.

Step by step procedure

✔ Write to your “executor with a request to quantify the unpaid principal. Mention that you use the Merciful Summer Institute, the number of the specific execution and do not forget to state your address and mobile number, or e-mail.

✔ As soon as the answer from the executor arrives, pay the principal + a fee of 908 crowns.

✔ Pay in advance, as the payment must be credited to the executor’s account no later than January 28, 2022. Keep the proof of payment.

✔ Contact the executor if everything went well.

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