Announced or rejected debt restructuring – What now? – Loan consolidation
If you have gone through the entire slow and demanding process that a debt relief application requires, then you have now received a response to your application. Either you have been notified of the debt settlement and thus have been helped to pay off your debt or your case has been rejected and your debt therefore the same as before.
You can read more about the various decisions of the district court and what your next step should be.
Accepted debt restructuring
Depending on whether you have been notified of ordinary debt relief or debt relief in the event of bankruptcy, there are now a number of years of 5 or 3 years ahead of you with limited financial conditions. In order to maintain your debt restructuring and thus not pay the full amount of your debt, you must make every year pay the stipulated amount to each of your creditors. If this agreement is breached the debt settlement will lapse and you will have to pay the full amount to each creditor.
Should you be lucky enough to receive a pay raise or win in the lottery over the given years, this will not affect your down payment. You still have to pay the amount set by the probate court at the creditor meeting.
If the accident is out and you suddenly get less in salary or otherwise end up in bigger financial problems, you still have to pay the agreed amount.
Rejected debt restructuring case
If your case has been rejected by the district court, you will not be granted a debt settlement. This will mean that all your debts are in existence and you will have to pay your debts to creditors in the normal way. If your debt settlement is rejected, you will receive a statement from the Probate Court as well as a description of when you will be able to apply for a debt settlement again.
Reasons for rejecting debt restructuring
There may be several reasons why your debt relief application has been rejected:
- Your debt is not old enough.
- Your personal circumstances (housing conditions, work situation, etc.) do not meet the requirements.
- Most of your debt is covered by consumer loans or similar.
Apply for Debt Recovery – What Now?
If you want to reapply for debt relief at a later date, here are some specific things you can do to increase your chances of granting the debt relief:
- Set a budget. Get an overview of what income and expenses you have and live with a minimum available amount the size of what you would have in a debt settlement.
- Keep track of your tax matters. It is important that your debts do not grow further. For example, you can enter into an agreement with Tax.
- Get control of your debt. Make sure you reduce your consumer debt and have a clear view of your debt. You can do this, for example, using the snowball method, which you can read more about here (link to “Pay off loans using the snowball method”).