§ 7-4. Compensation (erstatning) for costs of an unnecessary debt settlement (gjeldsordning) case
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The text of the law (unofficial translation)
§ 7-4. The debtor's (skyldnerens) liability for costs
What does this mean?
The section makes anyone who starts a debt settlement case without good reason liable to pay compensation. The liability arises only if this is done intentionally or through gross negligence (very irresponsible conduct). In that case, the person must cover the expenses that the public authorities and the creditors incurred because of the case.
The rule is among the general rules in chapter 7, alongside § 7-5 on costs in cases before the court (retten). The threshold is high: ordinary, honest applications (søknader) that do not succeed are not affected, only those that are started without reason and intentionally or with great carelessness.