Skuldprövningen

Skuldprövningen, often translated as "debt review" or "debt counselling," is a process in Sweden designed to help individuals struggling with overwhelming debt. It is initiated by a person who cannot manage their financial obligations and seeks assistance from a municipality. The primary goal is to assess the individual's financial situation and develop a plan to resolve their debt problems.

The process typically involves a municipal debt counsellor who meets with the individual to gather information about their income, expenses, assets, and all outstanding debts. This assessment forms the basis for a proposed debt settlement plan. The plan might include negotiating with creditors for reduced payments, extended repayment periods, or even a partial write-off of the debt, though this is less common. The counsellor acts as an intermediary between the debtor and their creditors.

If an agreement is reached between the debtor and the creditors, the individual enters into a formal debt settlement agreement. This agreement is legally binding and outlines the repayment schedule. During the agreed-upon period, the individual is expected to adhere strictly to the repayment plan. If successful, this process can lead to a debt-free future. However, the process requires significant discipline and commitment from the individual. If an agreement cannot be reached, or if the individual fails to adhere to the plan, other legal measures for debt recovery might be pursued by creditors.