In the current round of the summer of grace, Prague will give three million crowns to People in Need
The summer of grace now runs from the beginning of September to the end of November this year. In it, people can get rid of their debts to public institutions. “If we help people now, it will be cheaper for the city than if people are permanently stuck in foreclosures,” said one of the proponents of the proposal by opposition representative Patrik Nacher (ANO). According to him, cooperation with People in Need has proven successful in the past. “It turned out that this way is the fastest and most efficient,” he added.
Given that People in Need donates money to its collection, from which they help people, the money does not have to be used only for the people of Prague, but for any applicant. It will depend on the decision of the organization. “We value People in Need, that’s why we decided to give him a donation so that he can help people with debt relief,” said councilor Hana Kordová Marvanová (STAN).
According to Nacher, the city fund cannot be established so quickly that the city will be able to get rid of its debts. “That’s why we were thinking about how to provide help as quickly as possible,” he said. In the campaign, the city will then appeal to the citizens of Prague to apply for money. According to Marvanová, by law, the city cannot tell the organization to whom it will donate.
In the Czech Republic, the second round of grace summer for borrowers began on September 1st, and will last until the end of November. People will be able to get rid of debt enforcement of public institutions more easily. If they pay the original amount owed, or principal, and 1,815 crowns to the executor, interest, penalties and other payments will be waived and the enforcement proceedings will end. The action only applies to foreclosures that began before October 28 last year. Not for bankrupt people.
“In the first phase, within the framework of the summer of grace, we managed to help people in the transport company to forgive debts, i.e. penalties, court fees, fees to lawyers and executors, in the total amount of 146 million crowns. There are still 175,000 debtors whose debts totaling 1.9 billion crowns can be forgiven,” Deputy Mayor Adam Scheinherr (Prague Sobě) told ČTK.
The first round of the summer of grace took place from October 28 last year to January 28 this year. Tens of thousands of borrowers have used it. Even in the second round, it is possible to get rid of debts with municipalities, authorities, state funds, schools, municipal or state and semi-state companies, health insurance companies, Czech Radio or Czech Television.