New debt relief laws are generating more applications

Last year, just over 12,300 applications for debt relief were lodged with Kronofogden, the Swedish Enforcement Agency. This was equivalent to an increase of 10 percent compared with 2015.

“The increase is due partly to the fact that many people held back their applications until the new laws came into force, at the same time as the reliefs for the party who is to pay has had an effect. It is, however, too early to say whether the upturn is long term or temporary. We will monitor the trend carefully,” says Per Olof Lindh, Unit Head at the Swedish Enforcement Agency.

The new debt relief laws came into force on 1 November last year.

The Swedish Enforcement Agency has seen a sharp increase in the number of applications. The reliefs permitted in the new legislation include two payment-free months per year and a payment transfer service, under which people who are over-indebted pay a single amount each month to the Swedish Enforcement Agency, which then allocates the money to the parties who are to be paid.

Read more about this on Kronofogdens webb (Swedish)