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.