skuldsanering

Skuldsanering is a Swedish legal mechanism that provides debt relief for private individuals with long-term, unmanageable debts. It is regulated by the Skuldsaneringslagen and administered primarily by the Swedish Enforcement Authority (Kronofogden). The aim is to offer a structured path to a fresh financial start for people whose debts cannot reasonably be paid in the foreseeable future.

The scheme is available to private individuals, not companies. To qualify, the person must be unable to pay their debts as they fall due and show that their financial situation is not a temporary hardship. Applicants must have resided in Sweden for a certain period, and the authorities assess whether there is a realistic prospect of a sustainable income that can support a planned repayment over time. The decision involves evaluating assets, income, expenses, and overall solvency.

If approved, a formal debt relief plan is established. The plan typically spans about five years, during which the debtor contributes what they can from their income while essential living costs are protected. At the end of the plan, remaining eligible debts are discharged, giving the debtor a fresh start. Some debts—such as certain fines, penalties, or obligations arising from criminal acts—may not be discharged, and not all claims are necessarily wiped out.

Skuldsanering results in an stay or halt on most creditor collection efforts while the plan is in effect, and it binds all creditors to the agreed terms. If the debtor fails to comply with the plan, the process can be terminated, potentially followed by bankruptcy or continued enforcement of certain debts. Skuldsanering is thus an alternative to bankruptcy that aims to balance creditor interests with the debtor’s opportunity to regain financial stability.