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Consumer bankruptcy in Norway – what is it?

Consumer bankruptcy in Norway – what is it?


From a legal point of view, consumer bankruptcy in Norway is when you are no longer able to pay your debts on an ongoing basis. It is important to note that there is no distinction on the fjords as to whether you are an individual or a business owner. Bankruptcy is bankruptcy – there is one legal definition and one way to proceed.

Consumer bankruptcy in Norway and Debt settlement


Many people are of the opinion that once a consumer bankruptcy is filed, the debt is forgiven. This is wrong, the debt is not written off. Therefore, debt settlement (norwegian gjeldsordning) is the best solution. A settlement can be reached by a voluntary agreement with your creditors, i.e. those to whom you owe money. If your creditors are unwilling to make such an agreement, the court may order a forced settlement of the debt.

The purpose of this procedure is to put you back in control of your finances.

Read more about debt settlemnt in norway.

Protection during proceedings

While the case is pending, the debtor has protection from enforcement by creditors. A trustee is appointed to take custody of your property so that it can then be monetized to pay off some of the debt. An expert witness also plays an important role, carefully examining any actions taken by the debtor prior to the time the debt was incurred.

Negotiations are the most important mechanism

Everyone knows that it’s good to talk and get along. Norwegian banks are also aware of this. That is why in a consumer bankruptcy proceeding the court will first consider whether the creditor and the debtor have tried to settle their dispute by means of an amicable agreement. If the person presiding over the case determines that there is a chance for such a resolution, settlement proceedings will be initiated. Otherwise, the case will proceed through the bankruptcy route.

Bankruptcy proceedings – Consumer bankruptcy in Norway

It is worth mentioning that it is the creditor who usually files for bankruptcy. However, you can also apply for it on your own. Regardless of who the petitioner is, they should in any case have the financial means to secure the costs of the proceedings. Remember that the Norwegian courts are extremely scrupulous, especially when it comes to evidence. Therefore, fulfil your obligations during the proceedings – thanks to this, you can count on a quick and positive conclusion of the case.