Aid to pay for the costs of bankruptcy

Once an application has been approved

• The applicant shall apply for documents to the Debtors Ombudsman and take them to the District Court in the district where his domicile is located.

• The applicant must pay 20,000 ISK parliamentary fee when submitting the documents to the district court.

• The Debtors Ombudsman will pay the swap insurance, ISK 280,000, directly to the District Court when the case is heard.

• The applicant is summoned to the District Court when his case is heard. It is important that he attends because otherwise he will be considered to have waived the bankruptcy claim.

• A judge will assess whether the applicant meets the requirements for bankruptcy protection.

A declaration of financial aid granted shall be submitted to the District Court within three months of the debtor's representative's decision on it, otherwise the financial aid shall be cancelled.

If you are unsure what the next steps should be, you can call 512-6600.

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