Last Chance for Debt Relief: The End of the ‘Graceful Summer’ in the Czech Republic

Thursday marks the end of the so-called ‘graceful summer’ in the Czech Republic, the last day when people can advantageously rid themselves of their debts at state offices subject to administrative executions. These debts are not those pursued by bailiffs but obligations to the Czech Social Security Administration, the Financial Administration, and the Customs Administration.

The ‘graceful summer’ applies only to debts that arose before the end of September of the previous year. Upon debt payment, defaults on interest, penalties, fines, or execution costs will be forgiven. Debts from five thousand crowns and above can even be paid in installments.

According to Daniel Hůle from People in Need, “It’s the last minute, but people can still manage it if they deliver the request to the relevant offices on Thursday, either in person, through a data box, or through forms that these offices have on their websites.”

Hůle also pointed out that in most cases, it is necessary to pay the due amount on Thursday. This applies to one-time payments. If a person wants to take advantage of the legally provided option of an installment calendar, they must pay the first installment for tax arrears. According to the website, the first installment for social security debts is due at the end of December.

The website indicates that Czechs have state obligations for traffic fines, taxes, and social insurance amounting to billions of crowns. The Czech Social Security Administration is pursuing a debt of 7.6 billion crowns through tax executions, the Financial Administration more than 7.5 billion crowns, and the Customs Administration is demanding a sum of 3.3 billion crowns.