Statutory debt relief (gældssanering)
Also known as debt relief proceedings, debt restructuring for individuals, gældssanering, gældssaneringssag, sanering af gæld
Statutory debt relief is the insolvency court's reduction or cancellation of a private individual's debt when it is hopeless and permanently beyond reach.
In practice
Statutory debt relief is the tool available to the insolvency court (skifteretten) where a private individual’s debt is so large that it can never be repaid. If relief is granted, the debt is reduced — often drastically — or cancelled outright.
For a creditor, that is the end of the road. The claim is gone or cut down, and there is nothing further to be done.
It is worth understanding, because it is one more argument for not letting consumer claims sit: the longer they sit, the greater the risk that they end up in a debt relief case, where they come to nothing.
Where it commonly goes wrong
- Failing to respond to the notice. Creditors are heard. If there is an objection to be made — for instance that the debt was incurred irresponsibly — that is where it has to be said.