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Czech Insolvency Administrator Exam study materials
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Czech Insolvency Administrator Exam practice questions

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Question 1Integrated role knowledge and Czech legal background

Under Section 3(1) and (2) of the Czech Insolvency Act (Act No. 182/2006 Sb., insolvenční zákon), which of the following is NOT one of the cumulative conditions for establishing insolvency in the form of inability to pay (platební neschopnost)?

  1. The debtor's total liabilities exceed the total accounting value of their assets Correct answer.
  2. A plurality of creditors (at least two independent creditors)
  3. Monetary obligations overdue for more than 30 days
  4. Inability of the debtor to satisfy these overdue monetary obligations

Explanation

Under Section 3(1), inability to pay requires a plurality of creditors, monetary liabilities overdue for more than 30 days, and inability to meet them. Liabilities exceeding assets instead concerns over-indebtedness under current Section 3(3), which applies to a legal entity or an entrepreneur natural person.

Question 2Integrated role knowledge and Czech legal background

Under Section 3(2) of the Insolvency Act (Act No. 182/2006 Sb.), which statutory legal presumption presumes that a debtor is unable to meet their monetary obligations (platební neschopnost)?

  1. The debtor has suspended payments of a substantial part of their monetary obligations Correct answer.
  2. The debtor has been late on a single phone bill for 10 days
  3. The debtor reported an accounting loss in their annual tax return
  4. The debtor's managing director traveled outside the Schengen area

Explanation

Section 3(2) of Act No. 182/2006 Sb. sets out statutory rebuttable presumptions of inability to pay: letter (a) provides that a debtor is presumed unable to pay if they have suspended payment of a substantial part of their monetary obligations; other grounds include being overdue for more than 3 months, inability to satisfy claims through execution, or failure to submit statutory asset lists upon court order.

Question 3Integrated role knowledge and Czech legal background

Under Section 3(3) of the Insolvency Act, how is over-indebtedness (předlužení) defined, and to which debtors does it apply?

  1. It applies to legal entities and natural person entrepreneurs whose total sum of liabilities exceeds the value of their assets, taking into account further administration or business continuation Correct answer.
  2. It applies exclusively to non-commercial consumer wage earners with overdue credit card balances
  3. It applies only when a company has zero bank accounts and negative cash flow for 5 continuous years
  4. It applies to any municipality with outstanding public utility debt

Explanation

Current Section 3(3) defines over-indebtedness: a legal entity or entrepreneur natural person with multiple creditors is over-indebted when the sum of liabilities exceeds asset value. Asset valuation takes account of further management or continued operation where reasonably supportable.

Question 4Integrated role knowledge and Czech legal background

Under Section 109(1) of the Insolvency Act (Act No. 182/2006 Sb.), what legal effects occur automatically upon the publication of the notice of the commencement of insolvency proceedings in the Insolvency Register?

  1. Claims against the debtor cannot be asserted by lawsuits if they can be registered; rights to satisfaction from security can be asserted and acquired only under conditions set by the Act; execution can be ordered but cannot be carried out Correct answer.
  2. All employees are immediately terminated without notice or severance pay
  3. The debtor's management is immediately arrested and removed from their residence
  4. All commercial contracts of the debtor are voided with retroactive effect

Explanation

Section 109(1) of Act No. 182/2006 Sb. establishes the immediate statutory moratorium effects upon publishing the opening notice: claims cannot be asserted through separate lawsuits if they must be registered in insolvency; judicial execution can be ordered against the debtor's property, but cannot be carried out (provedena); and rights to security can be acquired only under statutory restrictions.

Question 5Integrated role knowledge and Czech legal background

Which combination includes claims that Section 168 of the Insolvency Act treats as claims against the estate (pohledávky za majetkovou podstatou)?

  1. Remuneration and expenses of the insolvency administrator, taxes and fees incurred during insolvency, and obligations arising from legal acts performed by the administrator Correct answer.
  2. Unsecured promissory notes issued by the debtor 5 years prior to insolvency
  3. Consumer credit installments that fell due prior to the opening of proceedings
  4. Fines imposed by the European Commission against the debtor's foreign parent company

Explanation

Section 168 lists several categories arising at different procedural stages. They include the administrator's remuneration and expenses and, under the applicable paragraphs and timing conditions, specified taxes, fees, customs duties, and obligations from legal acts performed by the person holding disposal authority. They should not all be attributed only to Section 168(1).

Question 6Integrated role knowledge and Czech legal background

Under Section 169(1)(a) of the Insolvency Act, which claims are generally treated as equivalent to claims against the estate?

  1. Labour-law claims of the debtor's employees, subject to the Act's specific exclusions and qualifications Correct answer.
  2. Severance bonuses promised to executive directors for corporate restructuring
  3. Wages of employees incurred more than 10 years prior to insolvency
  4. Recreational holiday vouchers issued by trade unions

Explanation

Section 169(1)(a) generally gives the debtor's employees' labour-law claims status equivalent to claims against the estate, unless the Act provides otherwise for a particular claim. The provision does not impose the three-year lookback stated in the former question.

Question 7Integrated role knowledge and Czech legal background

Under Section 166 and Section 298 of the Insolvency Act (Act No. 182/2006 Sb.), how are secured creditors (zajištění věřitelé) satisfied from the proceeds of the monetization of collateral (výtěžek zpeněžení zajištění)?

  1. Secured creditors are satisfied up to 100% of the net proceeds of the collateral monetization, after deducting expenses for administration and sale capped at statutory percentages and the administrator's remuneration Correct answer.
  2. Secured creditors receive exactly 50% of the gross sale price, with the remaining 50% transferred to municipal charities
  3. Secured creditors are treated identically to unsecured consumer creditors and satisfied pro rata
  4. The collateral is transferred to the Ministry of Justice and the secured creditor's claim is erased

Explanation

Under Section 298(1) and (2) of Act No. 182/2006 Sb., secured creditors have the right to be satisfied up to 100% of the net proceeds of the realization of the collateral. The administrator may deduct only the costs associated with the administration and maintenance of the collateral (capped at 4% of proceeds) and costs associated with sale (capped at 5%), plus the administrator's statutory remuneration.

Question 8Integrated role knowledge and Czech legal background

Under Section 173(1) of the Insolvency Act (Act No. 182/2006 Sb.), what is the standard statutory deadline for creditors to register their claims (přihlášky pohledávek) following a court decision on insolvency?

  1. Within two months of the publication of the decision on insolvency in the Insolvency Register Correct answer.
  2. Within 15 days of the oral hearing
  3. Within six months of the inventory of the estate being completed
  4. At any time up until the final distribution resolution is approved

Explanation

Section 136(2)(d) and Section 173(1) of Act No. 182/2006 Sb. mandate that creditors must submit their claim applications within the deadline set in the decision on insolvency, which is strictly two months from the publication of the decision in the Insolvency Register. Claims filed after this deadline cannot be examined and are not satisfied in the proceedings (§ 185).

Question 9Integrated role knowledge and Czech legal background

Under Section 190 to Section 192 of the Insolvency Act (Act No. 182/2006 Sb.), on what grounds may an insolvency administrator contest a registered claim (popření pohledávky) during the claim verification process?

  1. The administrator may contest the authenticity (pravost), the amount (výše), or the priority / ranking (pořadí) of the registered claim Correct answer.
  2. The administrator may contest a claim solely if the creditor is a foreign citizen
  3. The administrator may contest only the handwriting style of the claimant's signature
  4. Contestation is permitted only if approved in advance by the Czech Bar Association

Explanation

Under Section 192(1) of Act No. 182/2006 Sb., the insolvency administrator may contest a registered claim as to its authenticity (pravost - that the claim does not exist or has been extinguished), its amount (výše - that the owed sum is smaller than claimed), or its priority (pořadí - disputing secured status or preferential group).

Question 10Integrated role knowledge and Czech legal background

Under Section 198(1) of the Insolvency Act (Act No. 182/2006 Sb.), who must file an incidental action on determination of an unadjudicated claim (žaloba na určení nevykonatelné pohledávky) when the administrator contests its authenticity or amount?

  1. The creditor whose unadjudicated claim was contested must file the incidental action against the administrator within 30 days of the review hearing Correct answer.
  2. The insolvency administrator must sue the creditor within 15 days
  3. The insolvency judge must file a lawsuit against the Ministry of Justice
  4. The debtor's employees must file a joint class action within 60 days

Explanation

Section 198(1) of Act No. 182/2006 Sb. provides that creditors of unadjudicated (nevykonatelné) claims whose authenticity or amount was contested by the insolvency administrator must assert their right by an incidental action against the administrator within a 30-day preclusive time limit from the review hearing/notification. Failure to file results in the claim not being taken into account.

Question 11Integrated role knowledge and Czech legal background

Under Section 199(1) of the Insolvency Act (Act No. 182/2006 Sb.), who must file an incidental action to contest an enforceable claim (žaloba na popření vykonatelné pohledávky) established by a court judgment or arbitral award?

  1. The insolvency administrator (or contesting creditor) who contested the enforceable claim must file the action against the creditor within 30 days Correct answer.
  2. The creditor holding the enforceable judgment must file the lawsuit within 30 days
  3. The bailiff who served the prior execution order must sue the insolvency court
  4. No enforceable claim may ever be contested in insolvency proceedings

Explanation

Under Section 199(1) of Act No. 182/2006 Sb., if an enforceable claim (vykonatelná pohledávka, e.g. backed by a final judgment) is contested by the insolvency administrator, the administrator must file the incidental action against the creditor holding the title within 30 days of the review hearing. The burden of filing is reversed because the claim enjoys the presumption of enforceability.

Question 12Integrated role knowledge and Czech legal background

Under Section 225(1) of the Insolvency Act (Act No. 182/2006 Sb.), within what time limit must a person claiming ownership over an asset included in the estate inventory file an exclusion action (vylučovací žaloba)?

  1. Within 30 days after delivery of the administrator's notice that the asset was included in the inventory Correct answer.
  2. Within 15 days of the opening of the insolvency proceedings
  3. Within one year of the final distribution schedule
  4. Exclusion actions can be filed at any time until 10 years after bankruptcy closure

Explanation

Section 225(2) gives the claimant 30 days from delivery of the administrator's notice of inclusion to sue the insolvency administrator. Publication of the inventory is not stated as an alternative trigger for this period.

Question 13Integrated role knowledge and Czech legal background

Under Section 240 of the Insolvency Act (Act No. 182/2006 Sb.), what constitutes an ineffective legal act without adequate consideration (právní jednání bez přiměřeného protiplnění), and what is the statutory clawback look-back period?

  1. A transaction by which the debtor disposed of an asset for substantially less than its customary value or gratuitously; look-back period is 1 year prior to opening, or 3 years if made in favor of a close person Correct answer.
  2. Any commercial sale made at a 5% promotional retail discount within 10 years
  3. Payment of statutory employee salaries within 6 months
  4. Purchasing standard office supplies at market price within 30 days

Explanation

Section 240(1) and (3) of Act No. 182/2006 Sb. defines legal acts without adequate consideration (including gifts or sales well below market value while insolvent). The clawback action (odpůrčí žaloba) may challenge transactions concluded within 1 year before the commencement of insolvency proceedings, or within 3 years if concluded in favor of a close person (osoba blízká) or a person forming a group with the debtor.

Question 14Integrated role knowledge and Czech legal background

Under Section 241 of the Insolvency Act (Act No. 182/2006 Sb.), what is a preferential legal act (zvýhodňující právní jednání) subject to an avoidance action by the insolvency administrator?

  1. A transaction by which a creditor receives greater satisfaction than they would receive in bankruptcy, such as granting new security for an existing unsecured debt; look-back is 1 year, or 3 years for close persons Correct answer.
  2. Paying a parking meter fee 10 days before filing for bankruptcy
  3. Filing a truthful tax return on time with the financial authority
  4. Refusing to take out a high-interest payday loan

Explanation

Under Section 241(1) and (4) of Act No. 182/2006 Sb., a preferential legal act is a transaction whereby one creditor obtains a satisfaction or security higher than they would be entitled to in bankruptcy (e.g. providing collateral for an older unsecured loan or paying an unmatured debt ahead of others). The look-back period is 1 year (or 3 years for close persons/related entities).

Question 15Integrated role knowledge and Czech legal background

Under Section 242 of the Insolvency Act (Act No. 182/2006 Sb.), what is the statutory look-back period for intentionally fraudulent / damaging legal acts (úmyslně zkracující právní jednání)?

  1. Five years prior to the commencement of insolvency proceedings Correct answer.
  2. One year prior to the commencement of insolvency proceedings
  3. Six months prior to the commencement of insolvency proceedings
  4. Twenty years prior to the commencement of insolvency proceedings

Explanation

Section 242(3) of Act No. 182/2006 Sb. provides that an intentionally damaging legal act (úmyslně zkracující jednání), by which the debtor intended to curtail the satisfaction of creditors, may be contested if it was performed in the five years preceding the commencement of the insolvency proceedings.

Question 16Integrated role knowledge and Czech legal background

Under Section 286 to Section 288 of the Insolvency Act (Act No. 182/2006 Sb.), which methods of asset monetization (zpeněžení majetkové podstaty) is the insolvency administrator authorized to employ?

  1. Public auction under the current public-auctions law, sale outside auction, or auction conducted by a judicial bailiff Correct answer.
  2. Lottery raffles organized at municipal carnivals
  3. Private distribution of assets among the administrator's personal family members
  4. Destruction and dumping of all physical assets into municipal landfills

Explanation

Section 286(1) authorizes public auction under the law governing public auctions, sale outside auction, and auction conducted by a judicial bailiff. From 2025, Act No. 250/2023 Sb. replaced the former Act No. 26/2000 Sb., so the repealed statute should not be named as the current auction law.

Question 17Integrated role knowledge and Czech legal background

Under Section 316 of the Insolvency Act (Act No. 182/2006 Sb.), what statutory thresholds permit an entrepreneur debtor to resolve their insolvency through reorganization (reorganizace)?

  1. Total annual net turnover for the accounting period preceding the petition reached at least CZK 50,000,000, or the debtor employs at least 50 full-time employees Correct answer.
  2. The debtor has outstanding liabilities of at least CZK 500,000,000 and 1,000 employees
  3. Reorganization is available only to state-owned defense contractors
  4. Reorganization is permitted for any consumer debtor without financial limits

Explanation

Under Section 316(4) of Act No. 182/2006 Sb., reorganization is permissible if the debtor is an entrepreneur and: a) total annual net turnover reached at least CZK 50,000,000 in the last accounting period, or b) the debtor employs at least 50 employees under employment contracts. Under subsection (5), these limits do not apply if the debtor submits a pre-packaged reorganization plan approved by at least half of secured and unsecured creditors.

Question 18Integrated role knowledge and Czech legal background

Under Section 389(1) of the Insolvency Act (Act No. 182/2006 Sb.), who is statutorily eligible to apply for debt relief (oddlužení / personal bankruptcy)?

  1. A debtor who is not an entrepreneur, or an entrepreneur whose debts do not originate from their business activities or where business creditors consent Correct answer.
  2. Any joint-stock company with publicly traded shares on the Prague Stock Exchange
  3. Exclusively individuals sentenced to custodial criminal imprisonment
  4. Foreign sovereign governments facing international debt restructuring

Explanation

Under Section 389(1) and (2) of Act No. 182/2006 Sb., debt relief (oddlužení) is intended for natural persons and legal entities not established for business purposes (non-entrepreneurs). Entrepreneurs may also propose debt relief under Section 389(2) if their debts do not arise from business, or if business creditors consent, or if debts remained from discontinued prior business.

Question 19Integrated role knowledge and Czech legal background

Under the 2024 reform of the Insolvency Act (Act No. 252/2024 Sb., effective October 2024, transposing the EU Restructuring and Insolvency Directive), what is the standard baseline duration of the repayment plan in debt relief (oddlužení)?

  1. 3 years (36 months) for all qualifying debtors Correct answer.
  2. 5 years (60 months) with no exceptions
  3. 10 years (120 months) for all debtors
  4. 1 year (12 months) without requiring any repayments

Explanation

Effective 1 October 2024, amendment Act No. 252/2024 Sb. shortened the basic repayment plan duration in debt relief from 5 years to 3 years (36 months) for all natural persons, aligning Czech law with Directive (EU) 2019/1023 on restructuring and insolvency.

Question 20Integrated role knowledge and Czech legal background

Under Section 414 and Section 416 of the Insolvency Act (Act No. 182/2006 Sb.), what is the legal effect of a court decision granting discharge from remaining debts (osvobození od placení pohledávek) upon successful completion of debt relief?

  1. The debtor is discharged from paying the unpaid remainder of registered claims and claims that were not registered even though they should have been; these claims become natural obligations (nepřímo vymahatelné) Correct answer.
  2. All creditors are entitled to immediately initiate fresh civil lawsuits for the full balance plus compound interest
  3. The debtor is permanently stripped of their civil voting rights and passport
  4. The state pays the remaining debt balance to the commercial banks

Explanation

Section 414 of Act No. 182/2006 Sb. provides that upon successful completion of debt relief, the insolvency court discharges the debtor from the obligation to pay the remaining unsatisfied portion of registered claims, as well as claims that were not registered. The obligations are not wiped from existence but are transformed into natural obligations (naturální obligace) that cannot be coercively enforced in court or execution.

Question 21Integrated role knowledge and Czech legal background

Under Section 416(1) of the Insolvency Act (Act No. 182/2006 Sb.), which specific claims are strictly EXEMPT from discharge (osvobození) and must continue to be paid even after debt relief is completed?

  1. Penal fines imposed in criminal proceedings for intentional criminal offenses, damages caused by intentional breach of legal duties, and child maintenance / alimony claims Correct answer.
  2. Unsecured bank credit card debts incurred 2 years prior to bankruptcy
  3. Utility bills for water and electricity consumed during the debtor's youth
  4. Commercial advertising invoices from social media providers

Explanation

Section 416(1) of Act No. 182/2006 Sb. explicitly lists non-dischargeable claims: 1) statutory alimony/maintenance claims, 2) compensation for damages caused to health or life, 3) damages caused by intentional unlawful acts, and 4) monetary penalties and fines imposed in criminal proceedings for intentional criminal offenses.

Question 22Integrated role knowledge and Czech legal background

Under Section 115 of the Insolvency Act (Act No. 182/2006 Sb.), what is an individual or pre-insolvency moratorium, and what is its maximum statutory duration?

  1. A temporary protective court freeze requested by an entrepreneur debtor with the consent of a majority of creditors; duration is up to 3 months, extendable by at most 30 days Correct answer.
  2. A permanent state subsidy that pays company expenses for 5 years
  3. An order allowing the police to take over corporate bank accounts indefinitely
  4. A mandatory pause lasting exactly 14 days before an individual files for divorce

Explanation

Under Section 115 and Section 119 of Act No. 182/2006 Sb., a debtor who is an entrepreneur may propose a moratorium before or after the opening of insolvency proceedings, supported by the written consent of a majority of creditors. The court may declare a moratorium for a maximum period of three months, which may be extended once by up to 30 days.

Question 23Integrated role knowledge and Czech legal background

Under Section 246 of the Insolvency Act (Act No. 182/2006 Sb.), who has the right of disposal over the insolvency estate once the court declares bankruptcy (prohlášení konkursu)?

  1. The insolvency administrator exclusively; the debtor's statutory body loses the authority to dispose of the estate assets Correct answer.
  2. The debtor's managing director continues to exercise full independent disposal authority
  3. The local municipal mayor acting as public trustee
  4. The debtor's largest unsecured supplier

Explanation

Section 246(1) of Act No. 182/2006 Sb. provides that upon the declaration of bankruptcy (prohlášení konkursu), the right of disposal over the insolvency estate passes to the insolvency administrator. Any disposal acts concerning the estate performed by the debtor after this moment are ineffective against creditors.

Question 24Integrated role knowledge and Czech legal background

Under Section 229(3) of the Insolvency Act (Act No. 182/2006 Sb.), who has the right of disposal over the estate in reorganization (reorganizace)?

  1. The debtor as a debtor-in-possession (dlužník s dispozičním oprávněním), subject to the supervision of the insolvency administrator and the creditors' committee Correct answer.
  2. The regional court judge sitting alone in chambers
  3. A foreign trade representative appointed by the Ministry of Foreign Affairs
  4. The trade union shop steward exclusively

Explanation

In reorganization under Section 229(3) and Section 330 of Act No. 182/2006 Sb., the debtor retains the right of disposal over the enterprise (debtor-in-possession) to manage daily operations and carry out the reorganization plan, while the insolvency administrator and creditors' committee exercise strict supervisory oversight.

Question 25Integrated role knowledge and Czech legal background

Under Section 268 of the Insolvency Act (Act No. 182/2006 Sb.), what happens to the debtor's joint property of spouses (SJM) upon the declaration of bankruptcy (prohlášení konkursu)?

  1. The joint property of spouses is dissolved by operation of law (zaniká ze zákona) Correct answer.
  2. The joint property is doubled by transferring the creditor's assets into SJM
  3. The marriage is automatically annulled with retroactive effect to the wedding day
  4. The joint property is transferred to the state heritage fund

Explanation

Section 268(1) of Act No. 182/2006 Sb. provides that the declaration of bankruptcy causes the dissolution of the joint property of spouses (zánik společného jmění manželů). The insolvency administrator then carries out the settlement of the dissolved SJM under Section 269 et seq., with the debtor's share incorporated into the bankruptcy estate.

Question 26Integrated role knowledge and Czech legal background

Under Section 274 of the Insolvency Act (Act No. 182/2006 Sb.), how is an agreement on the settlement of joint property of spouses (dohoda o vypořádání SJM) concluded between the administrator and the debtor's spouse?

  1. The agreement must be in writing and requires the approval of the insolvency court to become legally effective Correct answer.
  2. The agreement is informal and becomes binding upon an oral handshake
  3. The agreement must be signed by all creditors at a plenary convention in Prague
  4. The settlement is dictated exclusively by the local cadastral registrar

Explanation

Under Section 269 and Section 274 of Act No. 182/2006 Sb., the insolvency administrator may enter into an agreement on the settlement of the dissolved SJM with the debtor's spouse. To protect creditors, the agreement must be approved by the insolvency court; without court approval, the settlement is ineffective.

Question 27Integrated role knowledge and Czech legal background

Under Section 253(1) and (2) of the Insolvency Act (Act No. 182/2006 Sb.), what right does the insolvency administrator have regarding mutual (synallagmatic) contracts that were not fully fulfilled by either party at the time of bankruptcy declaration?

  1. The administrator may either fulfill the contract and demand performance from the other party, or refuse performance (withdraw from the contract) Correct answer.
  2. The administrator must perform all contracts personally without any discretion
  3. The other contracting party is imprisoned if they refuse to donate goods for free
  4. All contracts are transferred to the regional chamber of commerce

Explanation

Under Section 253(1) of Act No. 182/2006 Sb., if a synallagmatic contract on reciprocal performance has not yet been fulfilled either by the debtor or by the other party at the time of bankruptcy declaration, the administrator may either fulfill the contract and demand performance from the counterparty, or refuse performance (odmítnout plnění). If performance is refused, the counterparty may register a claim for damages.

Question 28Integrated role knowledge and Czech legal background

Under Section 256 of the Insolvency Act (Act No. 182/2006 Sb.), how is a lease agreement affected when the debtor is the lessee (nájemce) of commercial or residential premises upon bankruptcy declaration?

  1. The insolvency administrator is entitled to terminate the lease contract with a statutory notice period, even if the contract was concluded for a fixed term Correct answer.
  2. The landlord may immediately confiscate all goods inside the premises without judicial review
  3. The lease contract is extended automatically for 50 years at zero rent
  4. The landlord must pay the administrator a penalty equal to 12 months' rent

Explanation

Section 256(1) permits the administrator to terminate a lease or sublease made by the debtor as tenant or subtenant even when it was fixed-term. The statutory notice period may not exceed three months; the provision does not merely describe a typical three-month period.

Question 29Integrated role knowledge and Czech legal background

Under Section 140 of the Insolvency Act (Act No. 182/2006 Sb.), under what condition is set-off of mutual claims (započtení) admissible after the decision on insolvency has been issued?

  1. Set-off is permissible if the conditions for set-off were satisfied prior to the decision on insolvency, or if the claim arose before the decision and was acquired without bad faith Correct answer.
  2. Set-off is completely prohibited under all circumstances in Czech insolvency proceedings
  3. Set-off is permitted only for claims denominated in Swiss francs
  4. Set-off may only be performed by the debtor's direct grandparents

Explanation

Under Section 140(2) of Act No. 182/2006 Sb., set-off of mutual claims is admissible after the decision on insolvency if the statutory prerequisites for set-off (mutual maturity and eligibility) were met prior to the decision on insolvency. Set-off is prohibited if the creditor acquired the claim through an avoidable transaction or learned of insolvency at the time of acquisition.

Question 30Integrated role knowledge and Czech legal background

Under Section 302 of the Insolvency Act (Act No. 182/2006 Sb.), what document must the insolvency administrator prepare and submit to the court following the monetization of the bankruptcy estate before distribution can occur?

  1. The final report (konečná zpráva) and accounting of the administrator's remuneration and expenses Correct answer.
  2. An informal press release published on the company website
  3. A preliminary draft of a new commercial corporate charter
  4. A request for a state subsidy to compensate unsecured creditors

Explanation

Section 302 of Act No. 182/2006 Sb. requires the insolvency administrator, after monetizing the estate, to submit to the insolvency court the final report (konečná zpráva) summarizing monetization proceeds, satisfied priority claims, ongoing litigation, and an exact accounting of the administrator's remuneration and expenses.

Question 31Integrated role knowledge and Czech legal background

Under Section 306 of the Insolvency Act (Act No. 182/2006 Sb.), how is the final report (konečná zpráva) reviewed and approved?

  1. The court schedules a hearing on the final report; participants may file objections within 15 days of its publication, and the court decides by formal resolution Correct answer.
  2. The report is approved automatically by the court registry clerk without judicial review
  3. The report must be countersigned by all individual consumers in the municipality
  4. The report is approved by a private vote of the administrator's law partners

Explanation

Under Section 304 and Section 306 of Act No. 182/2006 Sb., the insolvency court publishes the final report in the Insolvency Register. Participants have 15 days from publication to file objections (námitky). The court holds a hearing on the final report and decides on its approval by resolution.

Question 32Integrated role knowledge and Czech legal background

Under Section 307 of the Insolvency Act (Act No. 182/2006 Sb.), what document governs the actual monetary payout to unsecured creditors after the final report becomes final?

  1. The distribution resolution (rozvrhové usnesení) Correct answer.
  2. A personal check signed by the debtor's accountant
  3. An informal cash withdrawal authorization
  4. A certificate of tax clearance from the financial office

Explanation

Section 307(1) of Act No. 182/2006 Sb. provides that after the resolution approving the final report becomes legally effective, the insolvency court issues a distribution resolution (rozvrhové usnesení) determining the exact percentage payout and monetary amounts to be disbursed to each registered creditor.

Question 33Integrated role knowledge and Czech legal background

Under Section 308 of the Insolvency Act (Act No. 182/2006 Sb.), on what grounds does the court cancel a bankruptcy liquidation (zrušení konkursu)?

  1. After the distribution resolution has been fully implemented, or if the court finds that the debtor's estate is entirely insufficient to satisfy even administrative costs Correct answer.
  2. If the debtor's managing director refuses to speak Czech during hearings
  3. Whenever the debtor submits an informal letter expressing regret
  4. Automatically every two years regardless of ongoing monetization

Explanation

Section 308(1) of Act No. 182/2006 Sb. provides that the court cancels bankruptcy: a) after the fulfillment of the distribution schedule, or b) if it is established that the property of the debtor is entirely insufficient to cover the costs of bankruptcy (zrušení konkursu pro nedostatek majetku).

Question 34Integrated role knowledge and Czech legal background

Under Section 312 of the Insolvency Act (Act No. 182/2006 Sb.), what happens to a legal entity debtor after its bankruptcy is cancelled following the fulfillment of the distribution schedule or for lack of assets?

  1. The cancellation of bankruptcy is the ground for the dissolution of the legal entity without liquidation, and the entity is deleted from the Commercial Register Correct answer.
  2. The legal entity is restored to full commercial operations with zero debts
  3. The company is gifted to the insolvency administrator personally as a private bonus
  4. The company is converted into a non-profit municipal hospital

Explanation

Under Section 312(3) of Act No. 182/2006 Sb. and Section 173(2) of the Civil Code, the cancellation of bankruptcy after distribution or for lack of assets constitutes statutory ground for the dissolution of the legal entity without liquidation (zrušení bez likvidace). The entity is subsequently struck off the Commercial Register by the registry court.

Question 35Integrated role knowledge and Czech legal background

Under Section 7 of the Insolvency Act (Act No. 182/2006 Sb.), how do the provisions of the Civil Procedure Code (Act No. 99/1963 Sb., OSŘ) apply to insolvency proceedings?

  1. The Civil Procedure Code applies subsidiarily, unless the Insolvency Act provides otherwise or its application is excluded by the nature of insolvency proceedings Correct answer.
  2. The Civil Procedure Code overrides the Insolvency Act in all procedural conflicts
  3. The Civil Procedure Code has no application whatsoever to insolvency matters
  4. The Civil Procedure Code applies only if both parties hold Czech citizenship

Explanation

Section 7 of Act No. 182/2006 Sb. establishes the principle of subsidiarity: the provisions of the Civil Procedure Code apply appropriately to insolvency proceedings and incidental disputes, unless the Insolvency Act stipulates otherwise or application is precluded by the specific nature of insolvency proceedings.

Question 36Integrated role knowledge and Czech legal background

Under Section 1309 et seq. of the Czech Civil Code (Act No. 89/2012 Sb.), how does a pledge (zástavní právo) affect an asset that becomes part of the insolvency estate?

  1. The pledge creates a secured claim in insolvency, entitling the pledgee to preferential satisfaction from the proceeds of the pledged asset under Section 166 IZ Correct answer.
  2. The pledge is automatically voided without compensation the moment bankruptcy is declared
  3. The pledge converts the pledgee into the sole managing director of the debtor
  4. The pledge requires the pledgee to pay all employee salaries of the debtor

Explanation

Under Section 1309 NOZ and Section 166 of the Insolvency Act, a validly registered pledge establishes the creditor as a secured creditor (zajištěný věřitel) in the insolvency proceedings, granting them the statutory right to priority satisfaction from the proceeds of the monetization of the encumbered asset.

Question 37Integrated role knowledge and Czech legal background

Under Section 2040 of the Czech Civil Code (Act No. 89/2012 Sb.), what is a security transfer of a right (zajišťovací převod práva), and how is it treated in insolvency proceedings under Section 166 IZ?

  1. It is an agreement temporarily transferring a right or ownership to secure a debt; in insolvency, the transferee is treated as a secured creditor regarding the asset Correct answer.
  2. It is an irrevocable permanent gift transferring title unconditionally without any return duty
  3. It is a criminal conspiracy to evade cadastral registration taxes
  4. It is a legal instrument available only to licensed commercial pawn shops

Explanation

Under Section 2040 of Act No. 89/2012 Sb., a security transfer of a right transfers ownership with a resolutive condition (rozvazovací podmínka) that title reverts upon repayment. Under Section 166 of Act No. 182/2006 Sb., a person in whose favor a security transfer was established is classified as a secured creditor in insolvency, with the asset included in the estate inventory.

Question 38Integrated role knowledge and Czech legal background

Under Section 1128 and Section 1130 of the Czech Civil Code (Act No. 89/2012 Sb.), how is an undivided co-ownership share (ideální spoluvlastnický podíl) in real property monetized by the insolvency administrator in bankruptcy?

  1. The administrator may sell the debtor's fractional co-ownership share at public auction or outside auction, or agree with the other co-owners on the joint sale of the entire property and division of proceeds Correct answer.
  2. The administrator must forcibly evict all non-debtor co-owners and demolish the building
  3. The co-owners must be forced to buy the share at three times market value
  4. The share is automatically abandoned to the state cadastral office

Explanation

Under Act No. 182/2006 Sb. and the Civil Code, the administrator monetizes the debtor's fractional co-ownership share by standard monetization methods (auction, direct sale). Alternatively, under Section 285 IZ, the administrator may agree with the other co-owners to sell the entire real property jointly, dividing net proceeds according to co-ownership shares.

Question 39Integrated role knowledge and Czech legal background

Under Section 1765 of the Czech Civil Code, when may a party demand renegotiation because of a change in circumstances (změna okolností)?

  1. When an unforeseeable and uncontrollable change creates a particularly gross disproportion, provided the affected party did not assume the risk of change Correct answer.
  2. Any bankruptcy declaration automatically cancels all commercial contracts nationwide under the doctrine of rebus sic stantibus
  3. Rebus sic stantibus applies only to meteorological disasters, never commercial agreements
  4. Debtors may unilaterally reduce all contract prices by 90% by invoking change in circumstances

Explanation

Section 1765 requires a sufficiently substantial, unforeseeable and uncontrollable change that creates a particularly gross disproportion in the parties' rights and duties. Relief is unavailable where the affected party assumed the risk. Whether financial distress meets those elements depends on the facts and risk allocation; insolvency should not be treated as a categorical answer without authority.

Question 40Integrated role knowledge and Czech legal background

Under Section 2004 of the Czech Civil Code, which statement accurately describes the temporal effect of withdrawal from a contract (odstoupení od smlouvy)?

  1. It generally cancels the obligation from the outset, but withdrawal from continuous, recurring, or successive performance normally has future effect unless prior partial performance has no independent significance Correct answer.
  2. It always has future effect and can never unwind an obligation from the outset
  3. It is unavailable once either party has made any partial performance
  4. It automatically makes an insolvency administrator personally liable for restitution

Explanation

Section 2004 starts with cancellation from the beginning, but contains important partial-performance rules. For a continuous or recurring activity or successive partial performance, withdrawal ordinarily operates only for the future; the exception is where earlier partial performance has no independent significance to the creditor.

Question 41Integrated role knowledge and Czech legal background

Under Section 160 of the Czech Insolvency Act (Act No. 182/2006 Sb.), which court has exclusive subject-matter and territorial jurisdiction over incidental disputes (incidenční spory)?

  1. The regional court acting as the insolvency court conducting the main insolvency proceedings Correct answer.
  2. The district court in whose circuit the plaintiff has their residential domicile
  3. The Supreme Court sitting in Brno as a court of first instance
  4. The Czech Trade Inspection Authority (ČOI)

Explanation

Section 160(1) of Act No. 182/2006 Sb. provides that the insolvency court conducting the insolvency proceedings has exclusive jurisdiction to hear and decide all incidental disputes (incidenční spory) arising in connection with those proceedings. In the Czech Republic, insolvency courts of first instance are regional courts (krajské soudy).

Question 42Integrated role knowledge and Czech legal background

Under Section 159(1) of the Insolvency Act (Act No. 182/2006 Sb.), which of the following is an enumerated incidental dispute (incidenční spor)?

  1. Disputes on the authenticity, amount, or ranking of registered claims, and disputes on the exclusion of things from the insolvency estate Correct answer.
  2. Divorce proceedings between the debtor and their spouse
  3. Disputes regarding the custody of minor children
  4. Criminal prosecutions for drink driving committed by the debtor's employee

Explanation

Section 159(1) of Act No. 182/2006 Sb. enumerates incidental disputes: disputes on determination of authenticity, amount, or ranking of claims; exclusion actions (vylučovací žaloby); clawback avoidance actions (odpůrčí žaloby); and disputes over settlement of dissolved SJM. Family status and criminal matters are excluded.

Question 43Integrated role knowledge and Czech legal background

Under Section 163 of the Insolvency Act (Act No. 182/2006 Sb.), what form of judicial decision does the insolvency court issue when adjudicating an incidental dispute on the merits?

  1. A judgment (rozsudek) Correct answer.
  2. A resolution (usnesení)
  3. A warrant for payment (platební rozkaz)
  4. An informal minutes note

Explanation

Under Section 163 of Act No. 182/2006 Sb., the insolvency court decides on the merits of an incidental dispute by a judgment (rozsudek). Other procedural matters within incidental proceedings are decided by resolution (usnesení).

Question 44Integrated role knowledge and Czech legal background

Under Section 91 of the Insolvency Act, what is the appeal rule for decisions made by the insolvency court in the exercise of its supervisory activity?

  1. No appeal is admissible against those supervisory decisions, including interim measures made in supervisory activity Correct answer.
  2. An appeal is automatically admissible against every supervisory direction
  3. No appeal is available against any decision anywhere in insolvency proceedings
  4. Only the Minister of Justice may appeal a supervisory decision

Explanation

Section 91 specifically bars appeals against decisions the insolvency court makes in supervisory activity, including interim measures in that activity. It does not establish that every insolvency decision is unappealable unless the Act expressly says otherwise.

Question 45Integrated role knowledge and Czech legal background

Under Section 108 of the Insolvency Act, what advance on the costs of insolvency proceedings may the court require from a creditor filing an insolvency petition?

  1. Up to CZK 50,000 if the debtor is a legal entity entrepreneur, or up to CZK 10,000 if the debtor is a non-entrepreneur natural person Correct answer.
  2. A flat mandatory deposit of CZK 1,000,000 across all petitions
  3. No deposit may ever be required from any creditor under constitutional fair trial rules
  4. Deposits must be paid exclusively in European Union carbon credits

Explanation

Under Section 108(1) of Act No. 182/2006 Sb., the insolvency court may order the creditor who filed the insolvency petition to pay an advance on the costs of the insolvency proceedings (záloha na náklady řízení) up to CZK 50,000 if the debtor is a legal entity or an entrepreneur natural person, or up to CZK 10,000 in other cases.

Question 46Integrated role knowledge and Czech legal background

Under Section 128a of the Insolvency Act (Act No. 182/2006 Sb.), what sanction may the insolvency court impose on a creditor who filed a manifestly groundless / vexatious insolvency petition (šikanózní insolvenční návrh)?

  1. The court rejects the petition within 7 days and may order the petitioner to pay a disciplinary fine of up to CZK 50,000, without prejudice to debtor damage claims under Section 147 Correct answer.
  2. The creditor is sentenced to 2 years in prison without trial
  3. The creditor's commercial company is immediately confiscated by the court
  4. The creditor is stripped of their driving license for 10 years

Explanation

Section 128a of Act No. 182/2006 Sb. was enacted to combat abusive petitions (šikanózní návrhy). If an insolvency petition is manifestly groundless, the court rejects it within 7 days. Under Section 128a(3), the court may impose a fine of up to CZK 50,000 on the petitioner, who also faces liability for massive commercial damages caused to the debtor's business reputation under Section 147.

Question 47Integrated role knowledge and Czech legal background

Under Section 147 of the Insolvency Act (Act No. 182/2006 Sb.), what is the nature of a creditor's liability for damages caused by filing an unjustified insolvency petition that was subsequently rejected or discontinued?

  1. Liability may arise where the proceedings were stopped or the petition rejected through the petitioner's fault, and also after dismissal subject to the statutory exceptions Correct answer.
  2. The creditor is completely immune from damages under the freedom of petition doctrine
  3. The creditor is liable only if the debtor proves intentional criminal fraud beyond a reasonable doubt
  4. Damages are capped by statute at CZK 500

Explanation

Section 147(1) covers stopping of proceedings or rejection caused by the petitioner, with a rebuttable presumption of fault in doubt. Section 147(2) extends the compensation right to dismissal but excludes the listed cases, including post-petition payment or an agreed alternative performance and the Section 143(3) situation. Describing this as strict liability avoided merely by due diligence is inaccurate.

Question 48Integrated role knowledge and Czech legal background

Under Section 42 of the Insolvency Act (Act No. 182/2006 Sb.), what is the legal role and composition of the creditors' committee (věřitelský výbor)?

  1. An elected executive body representing all creditors that protects their joint interest, supervises the insolvency administrator, and gives consent to key disposal acts; members are elected by the creditors' meeting Correct answer.
  2. A government advisory commission appointed by the Prime Minister
  3. A group of court security guards responsible for order in the courtroom
  4. A marketing team hired to promote the sale of company goods

Explanation

Under Section 42 et seq. of Act No. 182/2006 Sb., the creditors' committee (věřitelský výbor) is an elected body of creditors (typically 3 to 7 members) representing the collective interests of all creditors. It supervises the administrator's activities, reviews accounting books, and grants consent to major transactions (such as sale outside auction under § 289).

Question 49Integrated role knowledge and Czech legal background

Under Section 54 of the Insolvency Act (Act No. 182/2006 Sb.), how is voting conducted at a creditors' meeting (schůze věřitelů)?

  1. Voting power is calculated according to the monetary value of each creditor's admitted registered claim: CZK 1 of claim equals 1 vote Correct answer.
  2. Each creditor has exactly one vote regardless of whether their claim is CZK 10 or CZK 100,000,000
  3. Voting power is determined by the chronological length of commercial dealings with the debtor
  4. Only creditors holding foreign bank accounts are entitled to vote

Explanation

Section 49 and Section 54 of Act No. 182/2006 Sb. provide that creditors vote according to the financial weight of their claims: each CZK 1 of an admitted or established claim confers one vote at the creditors' meeting, ensuring that voting influence is proportional to financial exposure.

Question 50Integrated role knowledge and Czech legal background

Under Section 81 of the Insolvency Act (Act No. 182/2006 Sb.), what powers does the insolvency court exercise during its ongoing supervision over the insolvency proceedings (dohledová činnost soudu)?

  1. The court oversees the progress of the proceedings, reviews the administrator's reports, gives binding directions, and may impose disciplinary fines or remove the administrator for cause Correct answer.
  2. The court manages the commercial marketing campaigns of the debtor's subsidiaries
  3. The court physically packs goods in the debtor's warehouse for shipping
  4. The court guarantees the payment of all unsecured claims from the state treasury

Explanation

Under Section 81 and Section 82 of Act No. 182/2006 Sb., the insolvency court exercises supervisory authority (dohled): it monitors compliance with statutory duties, reviews the administrator's periodic reports, issues binding directions to the administrator and creditors' committee, and may impose disciplinary fines up to CZK 50,000 or dismiss the administrator for breach of duty.