||This thesis summarizes the key theory and experience relevant to Czech insolvency system. It discusses broader costs and impact of bankruptcy and insolvency law, main objectives of insolvency procedures and the key issues relating to the Czech insolvency system. The thesis analyses present Czech bankruptcy code and discusses its main flaws and problems that arise in practise. It brings also some important data and statistics. As will be seen, there has been a misunderstanding of its ex ante impact on the non insolvency period. The overall aim is to give suggestions in the design of the new insolvency code.