If you have a debt settlement agreement, you will need to be frugal. After your housing and living expenses have been paid, you will need to use the rest of your money to pay off your debts.
It is not customary to have a debt settlement agreement on more than one occasion.
Who can apply for debt settlement?
Only private individuals can apply for debt settlement. People residing outside Norway can also apply.
Under the Norwegian Debt Settlement Act, self-employed people are basically not eligible for debt settlement agreements. You could still be eligible for a debt settlement agreement if
- your business activities have ceased and there are no unresolved issues relating to that business
- the debts associated with your business constitute a negligible percentage of your total debts
All applications for debt settlement should be sent to the execution and enforcement commission where you live.
Debt settlement terms an conditions
Certain conditions need to be met in order to be eligible for a debt settlement agreement. The most important conditions are that
- you must be permanently unable to service your debt
- the debt settlement agreement must not appear offensive to others
Having the means to pay your debts during the debt settlement period is not a condition. People receiving social security or social assistance may also be eligible for debt settlement agreements if the terms and conditions have otherwise been complied with.
Debt settlement proceedings with the execution and enforcement commissioner
If the execution and enforcement commissioner opens debt settlement proceedings
After debt settlement proceedings have been opened, you and your creditors will negotiate a voluntary debt settlement agreement. The execution and enforcement commissioner will help you with these proceedings.
Your creditors cannot claim what you owe while the proceedings are taking place.
If the execution and enforcement commissioner has doubts about opening proceedings
When the execution and enforcement commissioner has doubts about opening debt settlement proceedings, he/she will send the case to the district courts. The district courts then decide whether or not debt settlement proceedings should be opened.
Debt settlement
If you and your creditors agree, you will have a voluntary debt settlement agreement. If you do not agree, you can ask the district court for a compulsory debt settlement agreement.
If you and your creditors agree, you will have a voluntary debt settlement agreement. If you do not agree, you can ask the district court for a compulsory debt settlement. The district court will consider whether or not the conditions for debt settlement have been met after the parties have presented their cases.
Amendment of granted debt settlement agreements
Your debt settlement agreement could be amended if circumstances have arisen that would make it difficult for you to comply with the agreement that you have entered into with your creditors. The execution and enforcement commissioner will help when negotiating with your creditors about making voluntary amendments.
Your creditors can also call for amendment of your debt settlement agreement if your experience a considerable improvement in your financial situation.
If your creditors do not accept your proposed amendments
You can ask the district court to enforce such amendments if you do not agree with your creditors.