Payment schedule

The enforcement authority may, instead of attachment of salary or business income, set up a payment schedule, if the debtor in a credible way can guarantee that he or she is able repay the amount in accordance with schedule. The payment schedule is set up for the same amount as the garnishment of wages or business income. If a payment schedule is set up instead of garnishment of wages or business income, the same rules for awarding leniency that are applied to these distraint types are applied to the payment schedule. Any tax refunds will be garnished regardless of a payment schedule.

In addition to setting up the payment schedule, also a distraint will be carried out, when this is necessary to make sure that the schedule will be kept. If the debtor fails to keep to the schedule, the distrained assets will be sold by compulsatory auction. The officer in charge may decide that the payment schedule has lapsed also if new debts of the debtor enter enforcement proceedings or if the debtor mismanages the distrained assets. The alternatives here are setting up a new payment schedule, to reflect the change of circumstances, or selling the distrained assets. The funds from the compulsatory auction will be allocated to cover the debt in enforcement. In this event, if the debt still has not been fully repaid, the matter will be returned to the creditor as barred for lack of means.

Payment time

Debts that enter enforcement proceedings must under the penalty of distaint be paid on the date stated on the request for payment. For special reasons, the enforcement authority may on the request of the debtor grant an extension of at the most three months to the payment time. If the debt concerns a child maintenance payment, no extension to the payment time is granted.

Payment contract

The enforcement authority may garnish wages or business income according to a written payment contract drawn up by the creditor together with the debtor. By the contract the amount of the instalments and the duration of the payment may be restricted. It is also possible to agree on how the debtor’s assets are allocated to the debts. The enforcement authority may, instead of garnishment of wages, allow the debtor to make the payments under the contract to the officer in charge. When necessary, distraint may be carried out in addition to the payment contract as security for payment.

Updated on 23 Juni 2009