The so-called grace summer comes into force from 28 October 2021 for 90 days. This is a one-time general pardon against debtors, whereby in the period from 28 Oct 2021 to 28 Jan 2022, debtors have the chance to settle their debts related to distrainment disputes relating to public institutions relatively painlessly.

A public institution is understood to mean the state, municipalities and regions, state-funded organisations, institutes or public benefit societies, state funds, public research institutions or public schools, voluntary associations of municipalities, state or national enterprises, as well as health insurance companies, Czech Radio, Czech Television and companies with a majority share of the state, municipalities or regions.

It is sufficient for the debtor to pay the original debt (principal) within the specified period. In addition, an amount of CZK 908 must be paid, which represents the cost of stopping the distrainment at the bailiff's office. Interest will be forgiven to the debtor.

In order to benefit from the grace period, the debtor must meet three conditions. The general pardon applies to persons who are subject to distrainment for debts owed to public institutions. Furthermore, the debtor must not be in the process of insolvency. Distrainment against the debtor must be conducted by a bailiff, which is not the case for administrative and tax distrainment.

The first step is to contact the bailiff with a request for quantification of the unpaid principal or to ask to see the file. It is essential to state in the registered letter to the executor that it is a payment for the purpose of using the grace summer according to part 2, article IV, paragraph 25, of act no. 286/2021 Coll.

If the letter did not state that this was a general pardon, the bailiff would use the payment as a normal instalment. The bailiff should then stop the distrainment, decide on the exemption from payment of accessories and issue a written decision, which will be sent out without undue delay.

If the debtor does not make use of the so-called grace period within the aforementioned three months, the distrainment will continue.