Gældsafvikling

Gældsafvikling is a Danish concept that refers to the process of canceling or settling debts owed to creditors. It is similar to bankruptcy in other countries, but has some unique characteristics due to the country's financial laws and regulations.

In Denmark, gældsafvikling is a voluntary agreement between a debtor and their creditors to settle the outstanding debt in full or in part. This can be done in various ways, such as by negotiating a payment plan or negotiating a settlement amount that is less than the original debt.

One of the key aspects of gældsafvikling in Denmark is that it is not considered to be a formal bankruptcy proceeding. As a result, it is often seen as a more favorable option for debtors who are struggling with debt but do not wish to undergo the formal bankruptcy process.

The Danish authorities encourage gældsafvikling as it helps debtors to settle their debts and start anew, while also allowing creditors to receive some payment for their outstanding claims. In order to qualify for gældsafvikling, debtors must meet certain requirements, such as being unable to pay their debts and not having sufficient income or assets to pay off the debt.

Gældsafvikling is regulated by the Danish Act on Debt Settlement, which provides a framework for debtors and creditors to negotiate and agree on a settlement. While gældsafvikling can provide a useful solution for debtors, it is not a panacea and may have implications for the debtor's credit score and financial reputation.