§ 3-5. The debtor's duties during the debt negotiation

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

Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська

In brief

The text of the law (unofficial translation)

§ 3-5. The debtor's duties during the debt negotiation period

During the debt negotiation period (gjeldsforhandlingsperiode), the debtor (skyldner) is obliged:
  1. to set aside wages and other income exceeding what the debtor needs for the necessary living costs of themselves and their household (husstand),
  2. to terminate lease agreements and other agreements on future services that do not concern goods and services necessary for the subsistence of the debtor or the debtor's household,
  3. not to dispose of or pledge assets and values that may serve to cover the creditors (fordringshaverne), unless the enforcement officer consents,
  4. not to incur new debt except with the enforcement officer's consent, or to make other dispositions that are likely to harm the interests of the creditors.
Consent under the first paragraph letter d shall only be given for refinancing, housing purposes or strictly necessary goods and services, and only if taking out the loan appears prudent with regard to the debt settlement and the debtor's financial position. Debt incurred during the debt negotiation period under this provision is not covered by the debt settlement. A decision that permits incurring debt cannot be appealed.
Source: Lovdata — Gjeldsordningsloven (the Debt Settlement Act) § 3-5

What does this mean?

This section sets out what you must and must not do while the debt negotiation period is ongoing.

Four duties come first. You must set aside income that goes beyond what you and your household need for necessary living costs. You must end tenancies and similar agreements that give you services in the future, but not agreements on goods and services that are necessary for subsistence. You cannot sell or pledge assets that could have gone to the creditors (kreditorene) unless the enforcement officer says yes. And you cannot take on new debt without the enforcement officer's consent. A general rule comes on top: you must avoid other dispositions that could harm the creditors.

The second paragraph sets a narrow framework for consent to new debt. The enforcement officer may only say yes to refinancing (replacing older debt), housing purposes or strictly necessary goods and services. Taking out the loan must also appear prudent in light of the debt settlement and your finances. Debt you take on in this way does not become part of the debt settlement. A consent cannot be appealed (påklages).

A constructed example: a debtor gets an offer to sell a valuable item and use the money for other purposes. Without consent from the enforcement officer this is not allowed, since the item may serve to cover the creditors.

The duties work together with the surrounding rules. The payment suspension (betalingsutsettelse) in § 3-4 protects you from the creditors, while § 3-5 makes demands in return. Securing of assets and wage deductions is covered in § 3-3, and the lapse of attachment liens (utleggspant) in § 3-6. The possibility of dismissing the case during the period is regulated in § 3-7.

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