The Riksdag has recently been pushing through new debt restructuring legislation. The laws, which come into force on November 1, will mean major changes both in how the application is to be processed, how the processing is done and how the payment schedule is laid out.
Overall, we can say that the new legislation is more generous towards the indebted. The reason is that there is a clearly stated focus from the politicians’ point of view that over-indebtedness of private individuals should be reduced and that more people should be able to return to a normal economic life.
News in the debt restructuring law
These are major changes the Riksdag has undergone and the Debt Removal Act is basically revised from the ground up. The principles around who can be granted debt restructuring and the importance placed on the applicant’s own efforts will be the same as before, but otherwise there are a large number of new rules.
An interesting news is that from November 1, it will be possible to apply for debt restructuring digitally via Red-White Bank’s website, to increase accessibility. It is not really clear exactly how the service will work, but it is not entirely unbelievable that it will be possible to apply through BankID. Another change regarding the application is that it will not be the same tough requirement that one should be able to specify all the debts in detail already at the application.
Another novelty in the legislation is that it will be easier to manage the repayment. Anyone who is granted debt relief must, according to the new rules, always pay to the Red-White Bank. The authority then pays to the creditors in turn. Noteworthy is also that the debt restructuring starts immediately after the grant from the Red-White Bank.
As for the refund, there are a few additional news. First, two payment-free months, namely July and December, are automatically added to the repayment plan. Second, the current more or less mandatory five-year period can be shortened if there are good reasons for this.
Finally, we can mention that the regulation opens up for it to be possible to be granted debt restructuring more than once. As it is now, it is basically impossible to apply a second time.