Frequently asked questions about debt adjustment

On this page, you will find answers to the most frequently asked questions about debt adjustment.

Applying for debt adjustment

How do I find out if I am eligible to apply for debt adjustment?

Debt adjustment is the final possibility for restructuring your debts. Before applying, you must determine if you can pay your debt in a reasonable time in some other way. Decisions on debt adjustment are made after a holistic deliberation.

Do I need to have a debt subject to enforcement to apply for debt adjustment?

Your debt does not need to be subject to enforcement for you to be eligible for debt adjustment.

I am unemployed. Can I be granted debt adjustment?

Debt adjustment can be granted even if you are unemployed.

A financial and debt counsellor recommended I wait until my debt goes to enforcement. Why?

Most often, debt adjustment is possible only after some years have passed from the time the debt was incurred. Debt becoming subject to enforcement often breaks the debt spiral and brings clarity to the situation.

Can I have too much or too little debt to be eligible for debt adjustment?

The amount of debt is not the sole criterion for granting debt adjustment. A debt adjustment is the final possibility for restructuring your debts. Before applying, you must determine if you can pay your debt in a reasonable time in some other way. Decisions on debt adjustment are made after a holistic deliberation.

How much debt will I have to pay during debt adjustment?

A calculation of your available funds will be made on the basis of your income (e.g. salary, pension, benefits) and expenses for the purposes of the payment scheme. Available funds are the amount of money you have at your disposal for repaying your debts each month. The amount of available funds is always personal and can vary depending on your situation.

A creditor objects to my application for debt adjustment. Can this prevent me being granted debt adjustment?

A creditor objecting to debt adjustment does not necessarily prevent it from being granted. The decisions are made after a holistic deliberation. The district court will provide you with an opportunity to express your view on the matter.

Why is my spouse’s income considered in debt adjustment? Is my spouse required to pay my debt?

Your entire family is considered in the calculation of your available funds. The income of your spouse affects how your shared expenses are divided in the calculation. Your spouse does not have to pay debts that are solely in your name. If you have joint and several debts with your spouse, and your spouse is a guarantor of your debt or has issued a guarantee, the situation is different.

How does my spouse’s income affect my available funds?

Marriage and cohabitation affect the division of expenses in the calculation of available funds. The expenses of a married couple are divided in proportion to their net income. The expenses of a cohabiting couple are divided in half. The expenses of a couple’s children are always divided in proportion to the couple’s net incomes, regardless of whether they are married or cohabiting.

What is a ‘zero scheme’?

If the amount of your expenses approved for your debt adjustment exceeds the amount of your income, you have no available funds. If you have no available funds, you can be granted a ‘zero scheme’.

How long does debt adjustment last?

The duration of a debt adjustment is usually three to five years. Individual circumstances may affect the duration. If the debtor retains their owner-occupied home during debt adjustment, the duration is usually longer.

My application for a debt adjustment was rejected. When can I re-apply?

Decisions on a debt adjustment are made after a holistic deliberation. The grounds for rejecting your application can affect your case. Read the grounds for the decision and discuss your case with a financial and debt counsellor.

During debt adjustment

I have been granted debt adjustment and a debt has surfaced that is not included in my payment scheme. What should I do?

A debt can be added to your payment scheme retroactively if the debt should have been included in the original payment scheme. Debts that were incurred before the debt adjustment began are included in the process.

I do not have the creditor’s account number. What should I do?

Contact the creditor and ask for their payment details.

I cannot reach the creditor or find their contact information. What should I do?

Save the amount of the monthly debt instalments in question in case you reach the creditor later or they demand payments.

I received a letter transferring the debt to another creditor. What does this mean?

The creditor has changed. The change, however, has no impact on the confirmed payment scheme. You should pay the new creditor the payments for the transferred debt. Contact the creditor and ask for the new payment details.

My income has decreased during the payment scheme. What should I do?

You may be able to change the payment scheme. Contact financial and debt counselling.

How do I make payments in debt adjustment and when are the payments due?

We recommend that you open a second bank account to which you transfer the funds each month and from which you make the debt adjustment payments. The payment of debts in debt adjustment must be made by the end of the month.

Can I defer payments?

In case of temporary payment difficulties, you have the right to defer payments under the payment scheme. Three months of deferral are available under a three-year payment scheme. If the generation of a payment scheme is five years or more, five months of deferral are available.

You must inform the creditor of the deferral, but you do not need to give a reason. A deferred instalment is carried over to the end of the payment scheme.

Does moving from one rental apartment to another during debt adjustment affect the process?

The amount of housing expenses is usually not updated on the payment scheme, so it is recommended to keep housing expenses at a consistent level. If you are considering moving from your owner-occupied home, contact financial and debt counselling.

Can I sell my owner-occupied home that is included in a payment scheme during debt adjustment?

Yes, you can. The assets from selling the home are primarily used to repay any secured debt, the cost of selling the home and any possible taxes. After that, they are used to pay other debts included in your payment scheme.

I have been granted debt adjustment and my income has increased. What should I do?

The additional payment obligation is part of the debt settlement, which is explained in the payment plan. If your income increases, be prepared for any additional payments by saving. Read more about additional payments.

I have been granted debt adjustment and I am getting married or moving in with my partner. Does marriage or cohabiting affect debt adjustment?

No, it does not.