On 19 April 2016, the Government submitted the Chamber of Deputies with Parliamentary Bulletin No. 785, a rather extensive bill amending the Insolvency Act. In addition to strengthening oversight of insolvency administrator performance or the regulation of entities providing services related to the institute of debt relief, the bill also bolsters available protections against bullying insolvency petitions.

The amendment proposes the introduction of an insolvency petitioner obligation: when filing an insolvency petition against an entrepreneur, the petitioner shall provide a security of CZK 50,000 for insolvency proceeding costs (or CZK 10,000 in the case of a petition against a non-entrepreneur). Until now, such a security has only been required in cases where the court deemed it necessary and explicitly imposed the obligation on the petitioner. If the petitioner fails in a due and timely manner to provide the security as proposed in the bill, this shall constitute a reason for the court to reject the insolvency petition as prime facie unreasonable.

The bill proposes that the court be authorized to impose a fine of up to CZK 500,000 on the petitioner in cases of the rejection of an insolvency petition as prime facie unreasonable (as opposed to the existing CZK 50,000 limit).

According to the bill, the petitioner would be able to re-file an insolvency petition that was rejected as prime facie unreasonable no sooner than 6 months after the effective date of the decision rejecting the original petition (with the exception of cases of rejection for failure to provide the security for insolvency proceeding costs).