§ 1-5. The municipality's duty to help with debt problems

The Debt Settlement Act (Gjeldsordningsloven)·LOV-1992-07-17-99

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The text of the law (unofficial translation)

§ 1-5. The municipality's duty to assist persons with serious debt problems

The municipality (kommunen) shall, as far as possible, assist a debtor (skyldner) who is trying to reach an out-of-court debt settlement (utenrettslig gjeldsordning) or similar with his or her creditors (fordringshavere), cf. Act of 18 December 2009 No. 131 relating to social services in the labour and welfare administration § 17.
Source: Lovdata — Gjeldsordningsloven (the Debt Settlement Act) § 1-5

What does this mean?

The section requires the municipality to help people who are trying to reach an out-of-court debt settlement with their creditors (kreditorer). This is an arrangement without a court, where the debtor and the creditors reach an agreement between themselves. The duty applies as far as possible, so it is not unlimited.

The section refers to a provision in the Social Services Act (loven om sosiale tjenester i arbeids- og velferdsforvaltningen). It belongs in chapter 1 together with the purpose in § 1-1 and the scope in § 1-2, and gives anyone struggling with debt a place to turn before any application (søknad) for debt negotiation (gjeldsforhandling).

Related sections
All sections of the Debt Settlement Act →