Same as at the turn of last year and this year, individuals subject to distrainment will now be given the opportunity to avoid owing interest and the costs of distrainment. The repetition of the Merciful Summer has been definitively confirmed and will run from 1 September to 30 November 2022.

What is this all about?

This is a government initiative allowing the waiver of the obligation of individuals, who are subject to enforcement proceedings for debt owed to the state and other public entities, to pay interest and costs associated with the debt being enforced. Therefore, if the debtor pays the original principal and the lump-sum compensation of the costs of distrainment from 1 September to 30 November 2022, the remaining fees are waived by the State.

What are the conditions?

Debts falling under the Merciful Summer include, for example, debts owed to:

• transport companies,
• hospitals, 
• health insurance companies,
• energy companies owned by the state,
• Czech Radio,
• Czech Television.

As a condition for using the Merciful Summer, the debtor must notify the executor in writing no later than 30 November 2022 that he/she is requesting to initiate the procedure under the law governing the Merciful Summer. If the debtor subsequently pays the enforceable principal and a lump-sum compensation for the costs of the enforcement in the amount of CZK 1,500 plus VAT, if any, by 30 November 2022 (but no earlier than 1 September 2022), the distrainment officer shall decide on the exemption from payment of all other outstanding claims exceeding the principal and shall also discontinue the distrainment proceedings. 

For the purpose of payment of the principal, the debtor has the option ask the bailiff in writing about the amount of the principal due, and the bailiff is obliged to reply to the debtor within 15 days. If the debtor submits this request by 15 November 2022, the time limit for payment shall be extended by the number of days, by which the bailiff exceeded the time limit for reply, and shall not end earlier than 5 days from the date, on which the debtor received the bailiff’s reply.

Only distrainments commenced before 28 October 2021 fall under the Merciful Summer. The Merciful Summer does not apply to enforceable financial penalties or other property sanctions imposed on the debtor in criminal proceedings for a deliberate criminal offence, claims for compensation for damage caused by a deliberate breach of a legal obligation, as well as claims by creditors for maintenance, claims for substitute maintenance and claims by creditors for compensation for personal injury.

Involvement of other institutions

It can be expected that some private institutions will also join the Merciful Summer, as they did last year. MONETA Money Bank, for example, launched its own merciful summer as early as 1 June 2022. It thus offers its clients the possibility of waiver of penalty charges and fines.

Author: Martina Šumavská, Lucie Stržínková