What you’ll learn in this article

• Key differences between enforcement and insolvency

• When you still have a choice – and when you don’t

• Pros and cons of both approaches

• What a lawyer advises people who are unsure what to do

Enforcement vs Insolvency – What’s the difference?

Enforcement means executing a final decision. The debtor has failed to meet their obligation, and the court or bailiff begins taking action. It’s about collecting a specific amount – often swiftly and harshly.

Insolvency is a legal process started by the debtor (or creditor) when multiple debts can no longer be managed. The goal is to settle the debts fairly, possibly through debt relief or liquidation of assets. It takes years.

The key difference: Enforcement never forgives your debt – it just collects. Insolvency can lead to partial or even full debt forgiveness – but in exchange for strict financial oversight and years of hardship.

When do you still have a choice?

You have a choice before insolvency proceedings begin, if you have multiple debts but are not yet insolvent. Once multiple enforcements are pending and you can’t keep up, insolvency may be your only option.

If you have just one enforcement or substantial income or assets, filing for insolvency could be unnecessary – or even harmful.

Advantages and disadvantages of each path

Lawyer’s recommendation

If you are managing your debts and only face one or two enforcements, try resolving them directly – via installment plans or filing for suspension.

If your debts are piling up, multiple creditors are threatening enforcement, or you’re at risk of losing your home, consider debt relief immediately. But beware: don’t fall for shady “debt relief companies” charging CZK 20,000 just to “review your case.”
Talk to a lawyer or accredited non-profit advisor instead.