Find a payday loan debt settlement
Debt settlement is a scheme where you can apply to the courts to have your debt deleted or, in more common cases, have it reduced to an amount that you are able to pay off. Push Button for settlement options will help you with payday loan debt settlement.
If the debt will be reduced, the probate court will decide how much can be forgiven, and a repayment scheme that extends for 3-7 years will come into effect, after which you are debt free.
Only people can get debt relief – not companies.
What are the requirements for debt relief?
There are no set limits on how much your debt should be before it can be forgiven, as many factors such as age, education, household size, and total household income should be taken into account.
However, there are certain requirements that should generally be in order:
- The debt is usually at least twenty times as large as the household’s total income each month. The debt must thus be so large that it cannot be paid off by a lifestyle change.
- You must have a stable income, so there is a guarantee that you can comply with the repayment scheme.
- You must have made sense with your finances. That is, you have not made new debts and paid off your loans when you could.
- A debt restructuring will lead to a lasting improvement in your financial situation.
However, it should be noted that even if you comply with the above requirements, you are far from certain to be approved. At the national level, approximately 2/3 of all applications are rejected.
How to get debt relief?
In order to get debt restructuring, you must submit a completed application form, which must be submitted or sent to the founding court in your jurisdiction.
The application form must include:
- Information on all income including public services.
- A list of the assets you and your spouse or cohabiting owner.
- A list of the liabilities you and your spouse or partner owe.
It is extremely important to be thorough with the application, as the probate court has the right to reject your application if it is defective. If your application is properly completed, you will be summoned to a probate meeting where your case will be reviewed. They will then assess whether there is a basis for initiating debt restructuring.
When a case is initiated about debt restructuring, the probate court will appoint a lawyer who will be responsible for the practical work of developing a proposal for debt restructuring.
The lawyer or assistant whom the probate court appoints must not be paid by you, but by the treasury. However, you must pay yourself if you use either your own lawyer, auditor or another type of adviser.
What happens if I get debt relief?
Once you have received debt restructuring, you have to repay the rest of your debt over a number of years – typically five years.
Every month for the 5 years you will get a disposable amount. The amount of availability is determined by the Ministry of Justice and is changed each year, as it is determined on the basis of the cash assistance level.
- The availability amount in 2013 for single people is 5740 KR.
- The availability amount for a married couple or a cohabiting couple in 2013 is DKK 9740.
- In addition, a supplement is available at the disposal if you have children. This amount is determined by the children’s age.
Debt remediation is thus not just a gift. You will have a tight economy that must be observed for at least 3 years. So you also have to make a sacrifice yourself, but it can be the way to get an improved economy.