Economics at your fingertips  

Příčiny neúspěchu prosazování sanačních postupů v insolvenční realitě

Reasons for the Failure to Implement Financial Rehabilitation Procedures in Insolvent Reality

Luboš Smrčka, Markéta Arltová and Jaroslav Schönfeld

Politická ekonomie, 2013, vol. 2013, issue 2, 188-208

Abstract: The study brings a new approach to the problem of the currently low use of financial rehabilitation methods in Czech economic reality. We examine several aspects of this problem, but consider the main problem to be the fact that entrepreneurial subjects enter into insolvency proceedings with a very small amount of assets compared to their liabilities. In such a situation, however, willingness on the part of creditors to enable reorganisation cannot be assumed - especially given that attempts to revive such a business are in the majority of cases clearly mistaken. Insufficient debtor property is also reflected in the fact that creditors receive satisfaction only to an insufficient degree; in comparison to OECD countries, the Czech Republic most of the time significantly behind the OECD country average when comparing insolvency proceedings. One of the possible ways of improving the prognosis for using the financial rehabilitation principle and the prognosis for investors to achieve adequate fulfilment during insolvency proceedings would be to tighten present regulations regarding the possibilities of indebting a business. This is presently done by the definition of over-indebtedness, according to which the liabilities of an entrepreneurial subject may not exceed the value of his property.

Keywords: bankruptcy; insolvency; insolvency law; debtor; creditor; reorganisation (search for similar items in EconPapers)
JEL-codes: C5 G33 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html) (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3

DOI: 10.18267/j.polek.894

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().

Page updated 2022-11-10
Handle: RePEc:prg:jnlpol:v:2013:y:2013:i:2:id:894:p:188-208