§ 4-6. Sale of assets in a debt settlement

The main rule is that everything falling outside the debtor's right to keep assets under § 4-4 and § 4-5 shall be sold in a way that gives the creditors as much as possible. The enforcement officer decides how the sale is carried out. If the enforcement officer so decides, the debtor must arrange the sale personally.

Other people's security in the asset can complicate matters. If encumbrances or other rights prevent a voluntary sale, the asset is sold or realised under the rules in the Enforcement Act on forced recovery. Anyone holding a seller's security right (a form of security in the item) must take the item back under chapter 9 of the Enforcement Act if that person cannot personally demand forced recovery in another way. Example: A valuable item has been pledged as security, and the secured creditor does not accept a voluntary sale. Then the sale cannot take place voluntarily, and the asset is realised under the Enforcement Act.

The enforcement officer also has a simplified route. He can notify the secured creditors that a voluntary sale will cause uncovered encumbrances (secured debt that the sale does not cover) to lapse, unless someone objects within a deadline of at least one week. When the sale has been completed, the court decides by court ruling which encumbrances have lapsed.

This section is the last in a series on what shall and shall not be sold. The home (bolig) is dealt with in § 4-4 and personal belongings in § 4-5, and the valuation (verdsetting) of what is kept follows § 4-7. The money is distributed under § 4-8. The section is also applied from other places in the Act, including § 2-5 on sale and valuation of the debtor's assets, § 3-2 on the call to submit claims and § 3-3 on safeguarding the debtor's assets.