§ 1-1. The purpose of the Debt Settlement Act (gjeldsordningsloven)

The Debt Settlement Act·LOV-1992-07-17-99

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The text of the law (unofficial translation)

§ 1-1. Purpose

The Act shall give persons with serious debt problems an opportunity to gain control of their finances. It shall make it possible for debtors (skyldnere) with such problems, upon an application (søknad) for debt negotiation (gjeldsforhandling), to obtain a debt settlement (gjeldsordning) either by agreement with the creditors (fordringshaverne) (voluntary debt settlement (frivillig gjeldsordning)) or by confirmation by the court (stadfestelse) of the district court (tingretten) (compulsory debt settlement (tvungen gjeldsordning)). The Act shall ensure that the debtor meets their obligations as far as possible, and that the debtor's funds are distributed among the creditors in an orderly manner.
Source: Lovdata — Gjeldsordningsloven (the Debt Settlement Act) § 1-1

What does this mean?

The section states what the Act is for. The aim is to help people with serious debt problems regain an overview and control of their finances. The way there is through debt negotiation, which can end in one of two ways: an agreement with the creditors (voluntary debt settlement) or a settlement that the district court approves (compulsory debt settlement).

The Act has two concerns. The debtor shall pay as much as can realistically be achieved, and the money shall be distributed in an orderly way among the creditors. The section opens Chapter 1. Who the Act applies to is set out in § 1-2, and the financial condition is set out in § 1-3.

Related sections
All sections of the Debt Settlement Act →