Battle for millions. Politicians decide on executions, there is a revolutionary novelty at play

According to a recent analysis for the Czech Creditors’ Association, with the introduction of local jurisdiction, each executor would receive a certain income of almost six million crowns a year, regardless of the results and quality of work.

According to the analysis of economist Lukáš Kovanda, changes in foreclosures would reduce the motivation of executors and worsen the payment morale of debtors, which would affect the private sector economy and the sustainability of public finances.

A tangible problem

On the contrary, the Bailiffs’ Chamber supports local jurisdiction and considers the mentioned analysis to be incorrect. She claims that it would remove hard business from executions and that executors could focus on the essence of their work. According to the Chamber, it is expected to reduce the administrative burden and thus reduce the cost of proceedings.

“Today, the creditor freely determines the bailiff according to previous experience, the effectiveness of enforcement, and the quality of services provided. The introduction of territoriality excludes this right of the beneficiary, which would eliminate competition between executors, who would lose any motivation for more effective enforcement, “fears Martin Maisner from the Board of Directors of the Czech Bar Association.

Executions are still a significant problem. People in execution have been declining since 2017, but they have more debt on their necks.

Specifically: In 2016 and 2017, the debtor had an average of 5.3 foreclosures. Until last year, the average number, according to data from the Bailiffs’ Chamber, rose to about 5.8.

The average principal recovered per debtor, ie the amount excluding interest, penalties and other fees, was CZK 371,880 in February. In the last year, it has increased by 10,803 crowns. The average individual execution amounted to 64,432 crowns.

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