Debt restructuring


A debt restructuring arrangement is intended to give private individuals with serious debt problems a chance to regain control of their finances. 

A debt restructuring arrangement is an agreement between you and your creditors about how you can pay as much as possible of your debt during a certain period, usually five years, in return for having the remaining debt cancelled. An arrangement of this kind can also include debts to public agencies. Such arrangements are usually only granted once in a lifetime. There are several solutions to debt problems.

A debt restructuring arrangement with us?

You should first try to agree on a payment arrangement with all your creditors. You must:

  1. Know who you owe money to and how much.
  2. Have an overview of your income and expenses.
  3. Propose a budget for the period.
  4. Propose how much you can pay on each claim.
  5. Propose how long the debt restructuring arrangement will last.
  6. Present the same proposal to us and your other creditors.

Were you unable to agree on a payment arrangement with all your creditors?

If we do not reach agreement, you can take the case to the execution and enforcement commissioner and request that debt settlement proceedings be initiated (a court debt restructuring arrangement).

If we are to agree to a court debt restructuring arrangement, we must consider the following:

  • You must be insolvent. That means that your financial problem is permanent, and that you will not be able to pay your debts in the foreseeable future.
  • Your debt restructuring proposal must not be seen as unreasonable or objectionable by others.

Did you fail to reach agreement on the proposal for a court debt restructuring arrangement?

In that case, you must ask the execution and enforcement commissioner for a compulsory debt restructuring arrangement before the negotiating period expires. The execution and enforcement commissioner will then send the case to the District Court.


What happens during the period the debt restructuring arrangement applies?

  • You are responsible for informing your creditors about any changes in your financial situation.
  • You are responsible for paying dividend (payments to creditors) to each of your creditors if a dividend has been agreed.
  • The creditors can demand that the arrangement be cancelled if you do not comply with it.
  • You will be registered as payment delinquent for as long as the court/compulsory debt restructuring arrangement lasts.

After a debt restructuring arrangement

  • When you have completed the debt restructuring arrangement in accordance with the agreement, the claims included in the arrangement will be deleted.
  • If you receive an inheritance, winnings or similar of a substantial size within two years of the end of the period the debt restructuring arrangement applies, your creditors can demand that this amount be divided between them.

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