What is it and why is it powerful

An acknowledgment of debt is a written declaration by the debtor confirming the existence and their obligation to pay a debt.
It resets the limitation period to 10 years and serves as strong evidence in court.

Common use cases:

• debtor agrees to pay later

• parties negotiate a payment plan

• confirmation of liability before court action

• as part of settlement or mediation

Legal framework

Under Sections 2053–2055 of the Czech Civil Code.
To be effective:

• must be in writing,

• debt must be due,

• debtor must expressly acknowledge the debt.

Key elements

• Parties involved

• Description of the debt (amount, reason)

• Statement acknowledging the debt

• Optional payment plan

• Signature and date

Common mistakes

• No written form

• Vague or incomplete acknowledgment

• Unclear whether the debtor actually admits the debt

• Missing date or signature

• Trying to acknowledge expired (time-barred) debt

Recommendations

Creditors:

• Use clear language, e.g., “I acknowledge the debt in full”

• Attach documentation (e.g. invoices, contract)

• Set deadline or repayment schedule

Debtors:

• Read carefully before signing – acknowledgment removes defenses

• Seek legal advice if unsure

Practice tip

One of the most powerful tools in debt collection – useful before going to court.
Courts often grant judgment without further evidence if acknowledgment is clear.

Debt acknowledgment template – symbolic fee

I offer a Czech-English template for debt acknowledgment, including optional repayment terms.

Ideal for personal loans, invoices, or business debts.

Reach out via e-mail or contact form for a quick solution.

FINAL THOUGHTS – WHAT NOW?

Acknowledgment of dept isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.