Prepare a written acknowledgement precisely identifying the debt and an instalment schedule with an acceleration clause. Under the Commercial Code, acknowledgement creates a presumption that the obligation exists to the acknowledged extent and starts a new four-year limitation period; the clause allows the full debt to be made due on the first missed instalment. However, acceleration must be exercised no later than the due date of the next instalment, and stricter rules apply to consumers.
A call saying “I cannot pay everything now; let me pay in instalments” is not bad news. The debtor is communicating and wants to pay, and you have an opportunity to turn an ordinary invoice into a document that can later support court proceedings and enforcement, provided the concession takes the correct legal form. This answer addresses relationships between businesses.
What a debt acknowledgement does
The Commercial Code applies between businesses:
If a person acknowledges a specific obligation in writing, that obligation is presumed to exist to the acknowledged extent at the time of acknowledgement. These effects also arise where the creditor’s claim was already time-barred when acknowledged.
— Section 323(1) of Act No. 513/1991 Coll. (unofficial English translation)
In a dispute, this reverses the burden of proof: the debtor must prove that the debt does not exist, rather than you proving that it does. Acknowledgement also starts a new four-year limitation period (Section 407(1)). For an obligation not yet time-barred, payment of interest and partial performance showing that the debtor also acknowledges the balance have the same effect (Section 407(2) and (3), read with Section 323(2)), so each properly paid instalment confirms the remaining debt. Extension cannot continue indefinitely, however: the limitation period ends no later than ten years after it first began (Section 408(1)). We discuss the wider context in when a claim becomes time-barred.
Identifying the debt is decisive
The law refers to a “specific obligation”, and lack of specificity is where agreements most often fail in practice. The acknowledgement should include an itemised invoice list with numbers, due dates and amounts, the legal basis (agreement, orders, delivery notes), and an express reference to accessories: whether the debtor acknowledges only principal or also default interest. If part payments have been made, state how they were allocated. An indefinite acknowledgement of “some debt” will not establish the presumption for the disputed amount.
Acceleration does not operate automatically
An instalment schedule without an acceleration clause protects the debtor rather than you. The Civil Code’s instalment rule, which also applies between businesses, states:
Where performance is in instalments, the creditor may demand payment of the entire claim because an instalment was not paid only if this was agreed or specified in a decision. The creditor may exercise this right no later than the due date of the next instalment.
— Section 565 of Act No. 40/1964 Coll. (unofficial English translation)
Two practical rules follow. The agreement must expressly include an acceleration clause, otherwise only the missed instalment can be recovered on default. When a payment is missed, acceleration must be invoked quickly, no later than the next instalment’s due date; otherwise the right arising from that default expires and arises again only on another missed instalment. Monitoring payments is therefore part of creditor protection, not merely administration.
What else the agreement should address
Writing is required for the acknowledgement to have its effects and is prudent for the rest of the agreement. In practice, it is useful to add security, such as another person joining the debt or a guarantee from a statutory representative, as well as default interest during repayment and unambiguous payment details with the order in which payments are allocated. If the debtor is not a business, the civil regime applies: acknowledgement must identify both basis and amount, and for an already time-barred debt it has effects only if the debtor knew about the limitation (Section 558 of the Civil Code). Consumers also benefit from protection against unfair practices, discussed in why debt acknowledgement should be in a separate document.
How we can help
We prepare a tailored acknowledgement agreement with an instalment schedule through our debt acknowledgement and instalment schedule service. If the debtor is not communicating, we start with a pre-action demand; we negotiate instalments and monitor performance as part of out-of-court debt recovery.
If your debtor has just proposed instalments, do not simply reply “fine, send the payments”: send us the documents and we will turn them into an agreement with an acknowledgement, acceleration clause and schedule.
This answer provides general information on the law as at 5 September 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
