Application for payday loan relief
If you are in major financial difficulties, it may be a good idea to apply for payday loan relief. People with large loans have the opportunity for a new fresh start.
All people can benefit greatly from this and you should make an application if you have many loans. They offer immediate relief.
What is debt relief?
Debt settlement is your opportunity to get rid of a hopeless debt or get it significantly reduced. The debt repayment means that your large debt lapsed or reduced to a payable amount.
It can be via a lump sum or via a longer repayment period of up to 5 years, where you have to pay your reduced debt.
Who can get debt relief?
The most essential condition for being able to get debt relief is that you cannot meet your debt obligations nor have the prospect of being able to do so in the near future.
In other words, this means that you cannot repay your loans because of an ailing economy. At the same time, it must be assumed that a debt restructuring will result in a permanent improvement of your personal finances.
There are no limits on the size of the debt as it must be kept up against other issues, including your age, education, and net income if you are in proportion.
There is a good reason to seek debt relief if you want a new and better start to your finances. A good rule of thumb prescribes that the debt must be 20 times greater than the monthly income in the household.
If you are single and have an income of 25,000 a month, then your debt will typically be DKK 500,000. If, on the other hand, you are a pensioner, aid recipient or on early retirement, less stringent requirements apply, and in many cases, the debt will only exceed DKK 100,000.
There is a difference between being normally a working Dane or an active person. If you have had a business, the debt must normally be at least DKK 250,000.
It is very individual if you have the opportunity to get debt relief, but it is in many cases worth applying for it.
Get help with seeking debt relief
It is possible to get help seeking debt relief and especially lawyers can be extremely helpful in the process.
Debt remediation starts by filling out an application form that can be requested in the bankruptcy court. Once the probate court has received your debt relief application, you are summoned to a meeting and they decide whether to initiate the case.
It is often a good idea to have help from a lawyer in connection with the application. The option and the rules on debt restructuring were introduced in the Bankruptcy Act in 1984 and the economic crisis has meant that more than one thousand Danes seek and receive their application for debt relief every year.
Debt repayment – availability and conditions
There are many rules and conditions that apply to debt restructuring. One of the most current issues for everyone is your availability during the repayment period. It can swing a lot and depends on your private situation. Are you single or married, do you have children, how do you live, etc.?
One of the important points of debt restructuring is that you have to be prepared to sacrifice yourself to get a new start. This means that you must be clarified that you have to pay off your debt with what you have, in addition to a given amount of money available. It will typically be for a period of 3-5 years.
However, limited availability is not worse than you have good advice on food, clothing and other current expenses. There just won’t be room for delicious vacations, new cuisine, or wild shopping trips.
On the other hand, it must be really fair when you would never get rid of your big debts.
For debt restructuring, the following conditions will typically apply:
- Your financial situation must not be unresolved
- The debt must not be from criminal or irresponsible financial acts.
- Debt must be so large that it is estimated that you cannot repay it.