Insolvency (insolvence)
A state in which a debtor cannot meet debts that have fallen due, and also the court proceedings that deal with it under Act No. 182/2006 Coll., the Insolvency Act. For individuals it most often ends in debt relief (oddlužení); for companies, in bankruptcy or reorganisation. All proceedings are published in the insolvency register, which the bank checks for every mortgage application. While proceedings are under way, you will practically not get a mortgage.
Example
Since the 2024 amendment, debt relief usually lasts 3 years. The data stay in the insolvency register for another 5 years after the proceedings end, and records in the BRKI and NRKI registers for 4 years after the debt is settled. Someone who completed debt relief in October 2026 has to reckon with cautious banks until 2031, even though formally they no longer owe anything.
In practice
If you have a mortgage and insolvency looms, contact the bank before you stop paying: a payment deferral or a longer term costs less than court proceedings. Insolvency does not cancel the bank's lien, and as a secured creditor the bank is paid from the sale of the pledged property. Steer clear of unvetted firms that charge to draw up a debt relief petition.
How it differs
Debt relief is one way of resolving insolvency, intended mainly for individuals. Enforcement (exekuce) collects one specific debt, while insolvency deals with all debts and all creditors at once. Registers such as SOLUS or BRKI record payment history; the insolvency register records court proceedings and their outcome.
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