Debt mitigation- solutions for debt problems

All debts incurred before the application was approved, and which are eligible for settlement under the law, are included in the debt settlement agreement.

The agreement is approved when all creditors who have submitted claims are deemed to have accepted its terms. Once the agreement takes effect, the payment moratorium comes to an end.

The debt adjustment period is tailored to the individual’s circumstances and generally lasts between one and three years. Whether payments must be made towards the claims during the debt adjustment period depends on the debtor’s ability to pay. Proposals for debt forgiveness are based on an overall assessment of the debtor’s circumstances, including their current financial situation and their future ability to pay.

Debt mitigation may include, for example:

• Payments in accordance with the debtor’s ability to pay during the debt mitigation period, with possible debt forgiveness at the end of the period.

• Payments in accordance with the debtor’s ability to pay during the debt mitigation period, followed by full repayment of the debts.

• A deferral of claims during the debt mitigation period in cases of temporary financial difficulties.

• A deferral of claims during the debt mitigation period, with debt forgiveness at the end of the period.

If the debtor has the ability to pay, a fixed monthly instalment is paid to a bank, which distributes the payments to the creditors.

Mortgage claims

You can negotiate a reduced payment or a fee-free period. This applies to mortgage lending claims and other mortgage lending claims, for example, for car loans.

Special remedies

Special remedies apply to debts to public bodies:

• Student loans: You can negotiate the payment period for student loans. If you default before agreeing to a loan, you will be added to the principal amount of the student loan.

• Premium liabilities: Premium liabilities are agreed on alongside a payment adjustment agreement.

• Unpaid public charges: Unpaid public charges are agreed upon in or with the contract.

• Fines: Fines are agreed on in parallel with a contract, for example with. A contract does not prevent the collector from imposing a surcharge for a financial penalty.

• Criminal costs: Criminal costs are agreed in a payment adjustment agreement.

Back: Responsibility and obligations during moratorium on payments

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