For many people, receiving a debt collection demand may be an unpleasant experience, and it is not always clear what it entails. Therefore, we have compiled some FAQs about the debt collection process and what it entails.
Debt collection is an action taken by one party against another party in order to get a debt paid.
The first step to a debt collection demand is that you have not paid your debts despite reminders. The number of reminders varies from company to company.
Often, the creditor chooses to file a claim at a debt collection agency instead of trying to recover the debt themselves. The debt collection agency then sends a debt collection demand to the debtor, which entails additional charges. The money must be paid to the debt collection agency, and not to the original creditor, by the due date stated in the letter.
No, with a single debt collection demand, you will not get a non-payment record.
However, if you do not pay before the due date of the debt collection demand, the case may be submitted to Kronofogden to initiate a payment order, which may result in a non-payment record in the long term.
If you need help in settling your debts, please contact us and one of our administrators will arrange a payment plan with you.
If you do not pay your debts despite the debt collection demand, an application for a payment order may be submitted to Kronofogden to settle your debt. In such cases, you will receive a letter from Kronofogden which you have to sign.
If you accept the debt and intend to pay it, you should contact us for the current payment amount and payment details. When full payment has been received, the claim will be revoked from Kronofogden on condition that no ruling has been issued.
If you wish to dispute the debt, you should do so in writing to Kronofogden. The case may be forwarded to the District Court.
If you are served by process and the debt is neither contested nor paid, Kronofogden will settle the debt by a ruling. A non-payment record is then registered with the credit bureaus.
A payment order is a way of claiming payment from the debtor, and is done by making an application at Kronofogden. It is a way for the claimant to get the debt paid. If the debtor does not dispute the payment, the application results in a ruling, which then forms the basis for Kronofogden's work to get the debt paid.
Neither we nor Kronofogden issues non-payment records; it is the credit bureaus that list them in their files.
A non-payment record remains active for three years for private individuals and five years for legal persons. Legal persons are also given a non-payment record during the application for a payment order, and this remains active for two years. A non-payment record remains active for the relevant duration regardless of debt repayment. A non-payment record is an indication that financial commitments have not been respected, and it can affect future loan and credit applications.
A debt relief order is a means by which severely indebted people can reduce their debt to a manageable level that enables them to pay the debt within the foreseeable future. Kronofogden is responsible for determining whether a person is entitled to a debt relief order. (Translated from Wikipedia, Swedish version)
Please avoid creating new debts while a debt relief order is in place as these are not included in the debt relief order and must be paid in full. If new debts are created, Kronofogden may seize your salary to pay for the new debts. Such a situation can make your debt relief order difficult to manage. Creditors can also apply for the cancellation of a debt relief order.
Here you can find answers to questions such as how to pay your debt, how much debt you have and what your options are if you can't pay all at once.
If you need help to get in control of your debts, please contact us, and one of our handlers will together with you find a payment plan that works for all.