§ 2-5. Sale and valuation before the debt negotiation is opened

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

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The text of the law (unofficial translation)

§ 2-5. Sale and valuation (verdsetting) of the debtor's (skyldnerens) assets

If the enforcement officer (namsfogden) finds it obvious that the debtor, in a debt settlement (gjeldsordning), must sell their home (bolig) or other assets, cf. §§ 4-4 to 4-6, and furthermore that the sale should be completed before the debt negotiation (gjeldsforhandling) is opened, the enforcement officer shall make a decision to that effect. The sale is carried out according to the rules in § 4-6.

If the enforcement officer finds it necessary in order to ensure that the debt negotiation can be completed within four months, the enforcement officer shall, before the debt negotiation is opened, arrange for valuation of assets under § 4-7.

Source: Lovdata — Gjeldsordningsloven (the Debt Settlement Act) § 2-5

What does this mean?

Sometimes it is clear that the debtor must sell their home or other assets to achieve a debt settlement. If the enforcement officer considers this obvious, and the sale should take place before the negotiation is opened, the enforcement officer shall decide that it happens. The sale follows the rules in § 4-6, which say that it must be carried out so that the creditors (kreditorene) receive the best possible recovery.

The second paragraph is about time. If it is needed in order to complete the negotiation within four months, the enforcement officer shall arrange for the assets to be valued (assessed) in advance. How the valuation is done is set out in § 4-7. If the debtor does not manage to sell in time, the application (søknaden) shall be rejected under § 2-6.

Related sections

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