A person who has a debt to someone is known as the debtor, and the person to whom the debtor owes the money is called the creditor.
To enable a debt to be collected it must be determined. This means that there must be a decision that says that there is a debt. The decision can be made by the enforcement service through a so-called payment order or by a district court through a judgment.
The enforcement service can collect debts
The enforcement service can also assist in collecting debts. If the debtor does not pay her/his debt, the enforcement officer will investigate whether the debtor has any property to attach. Attachment means that the enforcement officer takes money or things for payment of the claim that the creditor has. The attachment of pay is one way of effecting collection, another way is to attach personal property (for example bank assets) or real property (for example cars or properties).
Attachment of pay
Attachment of pay is the compulsory means that the enforcement officer most often uses when a debt has to be paid. The enforcement officer then orders the debtor's employer to retain a certain part of her or his pay. This money is sent by the employer to the enforcement officer, who thereafter reports this amount to the creditor.
A decision for the attachment of pay basically applies indefinitely. The enforcement service may under certain circumstances grant respite at the request of either of the parties.
A decision by the enforcement officer on attachment of pay can be appealed against to the district court. A decision not to grant respite can also be appealed against to the district court.
An application for debt rescheduling must be submitted directly to the Enforcement Administration. The Enforcement Administration reaches a decision on debt rescheduling and can grant debt rescheduling even if it is opposed by one or more of the creditors. The Enforcement Administration can also decide to change or rescind a decision regarding debt rescheduling.
A decision by the Enforcement Administration regarding debt rescheduling can be appealed to the District Court.
Decisions can be appealed to the Court of Appeal
A decision by the District Court can be appealed to the Court of Appeal. Leave to appeal is required for the case to be heard in the Court of Appeal.