Gjeldsutsettelse

Gjeldsutsettelse, meaning debt deferral or postponement, is a legal mechanism in Norwegian law that allows debtors to temporarily suspend or reduce their payment obligations for certain debts. This measure is typically implemented during periods of financial hardship, such as unemployment, illness, or other unforeseen circumstances that significantly impact a person's ability to meet their financial commitments. The primary goal of gjeldsutsettelse is to provide debtors with breathing room to stabilize their financial situation without the immediate threat of enforcement actions.

The application for gjeldsutsettelse is usually made to the Namsmannen (enforcement officer) or directly to the creditor. The decision to grant gjeldsutsettelse depends on a thorough assessment of the debtor's financial circumstances and the reasons for their inability to pay. Factors considered include income, assets, expenses, and the nature of the debt. If granted, a specific period for the deferral is determined, during which no interest may accrue on the deferred amount, or at least interest accrual might be limited.

Upon expiry of the deferral period, the debtor is expected to resume payments according to the original agreement or a newly negotiated payment plan. If the debtor's financial situation has not improved sufficiently, further extensions or alternative solutions like debt restructuring might be considered. Gjeldsutsettelse does not erase the debt; it merely postpones the obligation to pay, offering a temporary reprieve. It is important for debtors to understand the terms and conditions associated with gjeldsutsettelse to avoid further financial complications.