§ 4-10. Personal guarantee that has not fallen due in a debt settlement

Gjeldsordningsloven·LOV-1992-07-17-99

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The text of the law (unofficial translation)

§ 4-10. Personal guarantee claims

If, at the opening of debt negotiation (gjeldsforhandling), the debtor (skyldner) is bound by a promise of personal guarantee (kausjon), but the guarantee obligation has not fallen due, funds shall be set aside to cover this claim (fordring) as if the claim had fallen due. If during the debt settlement period (gjeldsordningsperiode) it becomes clear that the personal guarantee will not fall due, or the personal guarantee has not fallen due by the end of the debt settlement period, the funds shall be distributed proportionally among the other creditors (fordringshaver).
Source: Lovdata — Gjeldsordningsloven (the Debt Settlement Act) § 4-10

What does this mean?

The section applies to debtors who have given a personal guarantee, that is, guaranteed someone else's debt, where the claim had not yet fallen due when the negotiations were opened. Money is nevertheless set aside, as if the claim had fallen due. If it becomes clear during the period that the personal guarantee will not fall due, or if it has not fallen due when the period is over, the money set aside is shared proportionally among the other creditors. The section is based on the same idea as § 4-9 on disputed claims (omstridt fordring) and belongs to the distribution rules in § 4-8.

Related sections
All sections of the Debt Settlement Act →