The insolvency of the entrepreneur may be secondary

The insolvency of the entrepreneur may be secondary

The situation in his surroundings often leads to the insolvency of the entrepreneur. A few unpaid invoices are enough, and the problem of not repaying a quick loan or other loan and the related execution on the basis of a pre-agreed arbitration procedure is over. However, the Supreme Court gives a helping hand in such cases.

Supreme Court decision on arbitration clauses

Supreme Court decision on arbitration clauses

The helping hand filed by the Supreme Court to all entrepreneurs, but also to ordinary citizens in the field of arbitration clauses and subsequent distraints, consists in a binding decision (made under applicable legislation) that erroneous arbitration clauses are invalid from the beginning of the contract.

And what is the wrong setting? It is the missing specific person specified in the credit agreement as an arbitrator. Therefore, if the credit provider wishes to invoke the arbitration clause, it must have an arbitrator selected in advance and state this in the contract.

This is to protect clients from unfair practices associated with purely purposeful and, in particular, pre-agreed arbitration, but on the condition that the ordinary loan applicant will be able to find any links the arbitrator has to the lender. Furthermore, complete objectivity can never be expected in arbitration.

Courts and ministries went out to fight invalid executions

The aforementioned Supreme Court decision has generated a lot of emotion, but also further activity in helping entrepreneurs and ordinary citizens to face and stop illegal execution. The Regional Court in Ostrava decided in the first half of 2019 that bailiffs must return money collected from invalid execution based on incorrectly set arbitration clauses.

Given that courts are not used to actively seek out new cases because they only act on the basis of an action filed, the Ministry of Justice and the Ministry of Finance want to change this practice in the field of invalid execution. The Ministry of Finance urges the courts to take greater action in the area of ​​seizure review and their possible suspension or even settlement. And not only that.

It can be up to 133 thousand seizures!

It can be up to 133 thousand seizures!

Execution of up to 130,000, ie all execution based on arbitration, can be declared invalid. The ministries are well aware of the seizure reports.

This is one of the reasons why the Ministry of Finance sent the courts a complete list of distraints arising from the arbitration proceedings as soon as possible. If the execution was against a legal entity, the name, address and ID number are also listed. In the case of natural persons, common personal data are given.

The task of the courts will be to review these executions as quickly as possible and to annul them, as well as to return funds and to settle the illegal procedure in cases of incorrectly set arbitration clauses.

Loans without registers need not include an arbitration clause

Loans without registers need not include an arbitration clause

If an entrepreneur decides to take out a loan, he has many options in the market to turn to. Fast loans are readily available, but sometimes burdened by the aforementioned arbitration. The good news is that fast loans can be found without a register, where arbitration clauses do not feature, arbitration is completely omitted from the process. Indeed, serious lenders respect the fact that objectivity is to be ensured by a court, not an arbitrator.