Waiving legal costs

Please note that during the period 1st of January to 10th of March each year, the processing of requests for waiving of legal costs is down due to the submission of tax returns. Requests are then processed when the tax return deadline expires and applicants have submitted a new tax return. The date of receipt of an application shall be the date of receipt of the applicant's tax return to the District Commissioner of North west Iceland.

Application for waiver of legal costs

If the financial circumstances are difficult, the debtor may request that the cost of the prosecution be waived.

Please note that the application is not processed until all necessary supporting documents have been submitted.

Documents to be included in an application:

• A copy of the applicant's last two tax returns.

• A copy of the three most recent wage bills of the applicant.

Other supporting documents, for example:

• Certificate of attendance if the applicant is studying.

• A medical certificate if the applicant's ability to earn income in the future is impaired by permanent disability or illness.

• A certificate from the National Registry of Iceland on the custody and domicile of a child or children or a document showing the composition of child maintenance, that is confirmation or ruling from the district commissioner, a judgment or a court settlement.

An application for waiving of legal costs shall not prevent further recovery measures, such as embezzlement, forced sale or registration on the default register.

Handling time

When the application and the necessary supporting documents have been submitted, a reply may generally be expected before the tenth day of the month following receipt of all necessary supporting documents.

Assessment of waiving of criminal costs

In assessing whether legal costs will be waived the following factors are considered:

• That income does not exceed ISK 3,650,000 per year.

  • This amount is increased by ISK 406,000 for each child under the age of 18 who lives with the applicant or for whom he/she pays child support.

  • Income refers to the income tax base, capital income and tax-free income.

• Whether the applicant has assets, such as money in a bank account, shares, real property or other.

• Whether special circumstances, such as study or the imposition of a prison sentence, hamper the income earned by the applicant.

• Whether the applicant's eligibility for work is permanently reduced as a result of permanent disability or illness.

• Whether the applicant has paid payments under an agreement with SMNV for at least 1 year but is not likely to change his eligibility for employment for the better and it is clear that the applicant will not be able to pay the legal costs in the years to come.

Further information can be found in the guidelines of waiving legal costs.

Information is available at the District Commissioner of North-west Iceland at 458-2500.