Court orders for debt repayment

Legal debt repayment schemes were introduced in December 1998 as an amendment to the Bankruptcy Act. Private persons who are no longer able to meet their financial obligations can – under certain conditions – submit a request to have their debts restructured. The debtor pays back as much as he/she possibly can according to a strict scheme and under supervision of an administrator. Under the Bankruptcy Act, creditors can be forced to cooperate. After a period of (usually) three years, the debtor can make a restart with a clean slate.

Legal debt repayment schemes can prevent private persons, with or without one-man businesses from being pursued on account of their debts for years on end.