§ 7-1. Registration of debt negotiation and debt settlement
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 opening of debt negotiation (gjeldsforhandling) and debt settlements (gjeldsordning) are registered in the Register of Movable Property (Løsøreregisteret).
- The registration of the opening is deleted when the settlement is registered or when the period ends without a settlement.
- Assets subject to security (pant) that the debtor (skyldner) keeps require registration or a notification to the secured creditor (panthaver).
- After the period, only the enforcement authorities (namsmyndighetene) may use the information, and only to check whether there has been an earlier debt settlement.
The text of the law (unofficial translation)
§ 7-1. Registration of debt settlements etc.
What does this mean?
This section makes a debt case visible to the outside world. The opening of the debt negotiation itself is entered in the Register of Movable Property (the register for movable property, meaning assets that can be moved). The same applies to the debt settlement once it is in place, whether it is voluntary or compulsory.
The registration of the opening is temporary. It is deleted when a debt settlement is registered, or when the negotiation period ends without any settlement being reached. The public notice described in § 3-2 disappears at the same time. Under § 3-2, the enforcement officer must immediately give public notice of the opening and ask the creditors (kreditorer) to submit their claims within six weeks. Known creditors are also notified directly.
When the debtor is allowed to keep assets subject to security, further obligations apply. If the asset is entered in a public register of rights (a register that protects a right against third parties), the debt settlement must be noted there. If the asset is subject to a possessory pledge (the pledged item is in someone else's hands), the person holding the pledge must be notified.
After the settlement period has ended, the use of the information is strictly limited. Only the enforcement authorities may use it, and only in cases under this Act, to examine whether the debtor has had a debt settlement before. The enforcement officer does the actual work of registrations and notifications. The King in Council may issue more detailed rules in regulations.
This section is connected to the rest of chapter 7. Under § 7-2, certain encumbrances (panteheftelser) lapse when the settlement has been completed. Under § 7-6, a creditor may demand that the debtor document that the obligations have been met.
Example: A debtor is allowed to keep a pledged asset during the settlement, and the security is registered in a public register of rights. The debt settlement must then also be registered there, so that the encumbrance shows the correct status. If the debtor has instead handed over an item as a possessory pledge, the person who has the item is notified of the settlement.