Gjeldsavgjørelse

Gjeldsavgjørelse is a Norwegian term that translates to "debt settlement" or "debt restructuring." It refers to a process where an individual or a company facing financial difficulties attempts to reach an agreement with their creditors to modify the terms of their existing debts. This can involve reducing the principal amount owed, extending repayment periods, lowering interest rates, or a combination of these measures. The primary goal is to make the debt more manageable and prevent insolvency or bankruptcy.

The process of gjeldsavgjørelse is often initiated by the debtor who seeks professional assistance, typically from a lawyer, financial advisor, or a debt counseling service. They will assess the debtor's financial situation, identify all outstanding debts, and then approach creditors to negotiate new terms. Creditors may agree to a settlement to avoid the lengthy and potentially less profitable process of legal collection or bankruptcy proceedings.

Gjeldsavgjørelse can be a formal or informal process. An informal settlement involves direct negotiation between the debtor and creditors. A formal process might involve court-supervised proceedings, such as a debt arrangement (gjeldsordning) in Norway, which provides a legal framework for restructuring debts over a period of typically five years. Successful gjeldsavgjørelse allows the debtor to recover financially and rebuild their creditworthiness over time.