Most have at some point lost control of their finances and have had extra difficulty paying all their bills. There are two periods a year when this happens to a greater extent and the debt trap affects more people than usual – the month after the summer vacation and the month after Christmas and New Year. What can it really mean for the private economy when you can’t pay your bills?
What happens when you do not pay a bill?
Usually you receive a payment reminder with a new payment date, where it is also added to a delay fee (with a maximum of USD 60) for the unpaid sum. If you still do not pay, the creditor (those behind the bill) may choose to send you a debt collection claim. There is no law saying that the creditor must send out a payment reminder, but they can send out a debt collection claim immediately after the first due date.
What is a Debt Collection?
With a debt collection claim, the creditor announces that they will take legal action if the bill is not paid. With the debt collection requirement, the creditor also has the right to add USD 180 in the collection fee. The creditor also has the right to hire a debt collection company that raises the money for them. If you do not pay the debt collection claim, the creditor can choose to apply for a payment order from enforcement authority.
What happens if you end up with the Crown Chief?
If the creditor proceeds with the case to enforcement authority, then the next step is that they send out an injunction (decision from the authority) demanding that the bill and all additional fees be paid. If you do not pay now, enforcement authority can move on with more dramatic measures where they can come and collect valuables from your home to settle the debt, or even sell the entire home at an executive auction to free up cash to pay the debt with . The order that the Crown Magistrate usually chooses to seize assets is:
- bank funds,
- income from salary;
- loose property,
- real estate.
How do you get a payment note?
A payment note occurs when you do not pay a debt. If you do not pay after the first letter from enforcement authority with the order, they will give a so-called ruling where they determine your debt. Then the information about the debt becomes public and credit companies, such as UC or Lifenote, can collect the data into their databases. This means that it can be difficult, for example, to be granted a loan, buy something on installment, get a rental apartment or even get a telephone subscription, because you are not considered creditworthy.