Compulsory debt settlement - when you and your creditors do not agree
If you and your creditors do not agree during the debt settlement negotiations, the execution and enforcement commissioned can help you to draw up compulsory debt settlement proposals. These proposals are sent to the district court in question.
Even if your creditors disagree, the district court can decide if you should have a compulsory debt settlement agreement.
The district court may refuse an application for compulsory debt settlement if the terms of debt settlement have not been complied with. For example, the proposed debt settlement agreement might appear offensive to the other debtors or society at large.
Cancellation of a debt settlement agreement
Your creditors may apply to the district court to cancel your debt settlement agreement if
- you fail to pay your creditors as specified in the debt settlement agreement
- you fail to inform your creditors about any changes in your financial situation
If the debt settlement agreement is cancelled, your creditors can claim everything you owe. Creditors shall always submit cancellation applications to the district courts.
Amending debt settlement agreements
The execution and enforcement commissioner helps you to draw up proposed amendments to your debt settlement agreement. If you and the creditors agree about such amendments, these proposals will be confirmed by the execution and enforcement commissioner and the case will not be heard by the district courts. If you do not agree, you can ask the district courts for compulsory amendments. The execution and enforcement commissioner will help you with this too.
A creditor may also request amendment of your debt settlement agreement if your financial situation improves considerably.
Creditors shall always submit their amendment applications to the district courts.