What do we mean by 'permanent incapacity'? If you are permanently unable to service your debt, it means that you will not be able to pay the debt for several years. Permanent does not necessarily mean forever.
A debt settlement is based on a minimum amount of money you need to live on. The rest of your income must be used to pay off your debts. For a period of normally 5 years, you must therefore live on a very low amount. The advantage is that any debt remaining after the end of the period will be cancelled if you have complied with the obligations of the scheme.
First, you should try to establish a voluntary debt settlement yourself by contacting the people you owe money to and trying to reach an agreement with them. If this fails, you can apply for debt settlement to the bailiff (namsmannen) in your municipality. If you have expensive assets or property, you will often have to sell these or move to cheaper accommodation.
If you are considering debt settlement, you can contact us at Kraft Bank and see if it is possible to get help. If we are unable to find a solution, we can help you to contact the people you should contact in your municipality.
This article is part of the category Economic first aid , a collection of articles that deal with topics related to a strained economic situation, such as reminders and collection, payment notices, garnishments and forced sales. Read more about Financial first aid
