§ 5-1. How to petition for compulsory debt settlement (tvungen gjeldsordning)
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- Without voluntary agreement, the debtor (skyldner) can petition (begjære) for compulsory debt settlement, with a proposal that complies with § 5-2.
- The petition (begjæring) must reach the enforcement officer (namsfogden) before the period runs out, and it then extends the period by two months.
- The debtor can have the period extended by at most one month if a voluntary settlement looks possible.
- In case of an appeal (klage) or an appeal to a higher court (anke), the period runs until the decision is final and binding, but for at most one year.
The text of the law (unofficial translation)
§ 5-1. Petition for compulsory debt settlement
What does this mean?
This section opens the way to compulsory debt settlement, a settlement that the court sets. If the debtor and the creditors (kreditorene) do not agree on a voluntary settlement, the debtor can petition for a compulsory settlement. The petition must include a proposal that follows the rules in § 5-2.
The deadlines are crucial. The petition must have reached the enforcement officer before the debt negotiation period is over, and the enforcement officer sends the case on to the court immediately. If the petition is submitted within the deadline, the period is extended by two months. Example: The creditors have said no, and the period is nearing its end. The debtor must then get the petition with a proposal in to the enforcement officer before the period runs out.
The period can also be extended at the debtor's petition. The enforcement officer shall extend it if there is reason to believe that a voluntary settlement will be reached, but only by at most one month. The debtor shall be informed of this right when the negotiations are opened, and the enforcement officer's decision is final. If a refusal of confirmation by the court is appealed, or a court ruling is cancelled by the court of appeal, the period runs until there is a final and binding decision. It can nevertheless not be longer than one year.
This section is the first step on the compulsory route. The content of the proposal is governed by § 5-2, which among other things requires that the settlement meets §§ 4-2 to 4-10 and normally has a period of five years. The district court (tingretten) handles the case under § 5-3, and § 5-4 governs confirmation by the court, that is, the approval.