Co-owner in insolvency: what does it mean for my share?
Published 18 October 2026
Your co-owner's insolvency does not directly affect your share. Only the debtor's share is included in the insolvency estate (majetkova podstata); your share remains yours, and you can continue to use it and sell it freely. However, who you share the property with will change: instead of dealing with the debtor, you will now deal with the insolvency trustee (insolvenční správce), and the debtor's share may eventually be bought by a stranger.
Summary
- Your share does not form part of the insolvency estate and cannot be liquidated by the trustee.
- Once insolvency proceedings begin, the debtor cannot freely dispose of their share (Insolvency Act No. 182/2006 Coll., § 111); the trustee will liquidate it.
- Co-owners' general right of pre-emption (předkupní právo) was abolished, so you typically have no statutory right to buy the debtor's share first.
- You can sell your share at any time, but buyers will account for the uncertainty of having the trustee or a stranger as co-owner.
- Monitor the insolvency register, file any claims you have against the debtor, and engage with the trustee promptly.
What your co-owner's insolvency means for you
Co-ownership is governed by § 1115 et seq. of the Czech Civil Code No. 89/2012 Coll. Each co-owner holds their share separately, and the debts of one co-owner do not bind the others. Insolvency therefore affects only the debtor's assets, not yours.
The debtor's share in the property is part of the insolvency estate under the Insolvency Act No. 182/2006 Coll., which the trustee (insolvenční správce) will list and later liquidate. Importantly, the trustee does not sell the entire property as a whole—only what belonged to the debtor—unless all co-owners agree otherwise. The trustee cannot liquidate your share.
In practice, this means you will now deal with the trustee instead of the debtor on matters concerning the shared property. After the debtor's share is sold, you may end up with a stranger as your new co-owner.
What happens to the debtor's share and who decides
Once insolvency proceedings begin, the debtor's powers to dispose of assets that may belong to the insolvency estate are restricted (Insolvency Act, § 111). After a bankruptcy order is made (konkursu, § 229), the trustee takes control of the insolvency estate. The debtor normally cannot sell, give away, or encumber their share without the trustee's involvement.
Insolvency also suspends enforcement. Under § 109 of the Insolvency Act, execution against assets in the insolvency estate cannot continue. If the debtor's share was being sold at auction in enforcement (exekuce), insolvency will typically stop this and the trustee will liquidate the share through insolvency proceedings. For more context, see Buying a share in execution.
The trustee's goal is to liquidate the share for the highest return to creditors. They may offer it to interested buyers, sell it at public auction, or—if more beneficial—pursue settlement of the co-ownership under civil law. If the share is secured by a pledge (zástavní právo), special rules apply to its liquidation.
Do you have the first right to buy the debtor's share?
Co-owners' general right of pre-emption (předkupní právo) has been abolished. Now it exists only for six months after a share arises through inheritance (Czech Civil Code, § 1124). See Pre-emption rights of co-owners for details.
This has a practical consequence: you typically have no legal right to be offered the debtor's share first. A stranger may buy it. However, the trustee may offer it to you, and often will, because you are the most natural buyer. Do not hesitate to contact the trustee and express your interest.
When the share does not need to be sold
A straightforward rule applies to you: your share does not have to be sold. The debtor's insolvency does not compel you to sell, and the trustee cannot liquidate your share.
The debtor's share may also not always be sold. It depends on the form of insolvency resolution:
- Bankruptcy (konkursu)—the debtor's share is typically liquidated.
- Debt relief (oddlužení)—the debtor may repay creditors from income, and assets, including the share, need not be sold. This depends on the approved debt relief plan and the court's decision.
- Reorganisation or other solutions—asset handling is set out in the approved plan.
Information on how the insolvency is being resolved is available in the insolvency register. Specific outcomes cannot be predicted without seeing the full file.
If the debtor and their spouse are in joint matrimonial property (společné jmění manželů), special rules in the Insolvency Act may apply to its termination. Such cases merit individual assessment.
How to protect yourself against an unwanted co-owner
You cannot prevent the sale of the debtor's share entirely. However, you can be proactive:
- Monitor the insolvency register. Check whether proceedings are ongoing, who the trustee is, and the deadline for filing claims.
- Contact the trustee. Tell them you wish to buy the share or offer joint sale of the whole property.
- File any claims you have. If you have a claim against the debtor—for example, for costs incurred on the shared property—file it within the statutory deadline, or you may lose it.
- Consider settlement. See Settlement of co-ownership for information on terminating the co-ownership by agreement or court order.
- Monitor use and management. Common matters are decided by a majority vote by share size (Czech Civil Code, § 1128). The trustee steps into the debtor's shoes and must be consulted on costs and use.
If you cannot afford to buy the debtor's share and do not wish to share the property with a stranger, selling your own share may be the solution.
Selling your own share when your co-owner is insolvent
You can sell your share at any time without the debtor's or trustee's consent. However, buyers will factor in the uncertainty of dealing with the trustee or a future stranger. The share trades at a discount due to limited utility; price is determined mainly by usability, not a proportional share of the whole. We therefore give no indicative amounts—it depends on the specific property.
When selling, note the following:
- Ownership transfers only upon registration in the Czech Land Registry (katastr nemovitostí). The land office cannot decide until 20 days after notifying the owner (Land Registry Act No. 256/2013 Coll.); average registration takes about 22 days.
- Payment should be by bank transfer through lawyer's escrow (advokátní úschova). Cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.).
- Real estate acquisition tax was abolished (Act No. 386/2020 Coll.). Tax on income, such as timing and residence rules, is governed by the Income Tax Act No. 586/1992 Coll.; consult the tax authority or a tax adviser.
We provide a written offer within 24–48 hours with a price justification. The valuation is non-binding, free of charge, and does not require a title deed at the outset. We do not contact other co-owners unless necessary; attorney agreements and escrow are included in the fee, and funds are released upon signature for standard shares. More questions are answered in Frequently Asked Questions.