Arrears (restance)
Also known as arrears, behind with payment, amount overdue, bagud med betaling, skyldigt beløb
Arrears are the part of the debt that has fallen due and has not been paid — what the debtor is behind with.
In practice
Arrears are what has fallen due. They are distinct from the outstanding balance (restgæld), which is the whole amount outstanding — including what has not yet fallen due.
The difference matters in an instalment plan: if one instalment is defaulted on, the arrears amount to that one instalment, but the agreement ought to provide that the entire outstanding balance then falls due immediately. Without that clause, you can only enforce the single instalment.
Where it commonly goes wrong
- The agreement has no acceleration clause. Then you have to go to the bailiff’s court for every single missed instalment.