If a claim is not settled voluntarily, the rules pertaining to debt collection and enforcement will become applicable.
When concerning collection of monetary claims, a differentiation is made between extrajudicial debt collection and judicial debt collection. Our lawyers assist with judicial debt collection, i.e. the recovery of claims through the courts in order for these to be legally enforced.
There are various methods by which enforcement of a claim can take place through the execution and enforcement authorities. The common feature of enforcement is that there must be grounds for enforcement and that these grounds must be enforceable.
A distinction is made between ordinary and special grounds for enforcement. Ordinary grounds for enforcement will typically be judgments, orders or other decisions by the courts, while debt instruments, security interests, lease contracts with eviction clauses etc. are typical special grounds for enforcement.
The enforcement of claims through the execution and enforcement authorities consists of different stages and takes place in different forms, for example:
- A request for attachment on the debtor’s assets, for example, real estate, ship, motor vehicle, receivables, shares etc.
- Request for the enforced sale of the attached item, for example, a property.
- Enforced sale of sales lien in moveable property upon return to the lienholder.
- Claims for default on rent can take place by requesting the eviction of the tenant, possibly together with an attachment being requested for the claim.
A claim may also be made subject to provisional security, provided there is a basis for security.
For monetary claims, this is decided through the arrest of an asset. An arrest will prevent the debtor from disposing of the asset in question until a decision has been handed down in the case. The basis for security (condition for arrest) is that there is reason to fear that enforcement of the claim would otherwise be evaded or considerably impeded or would have to take place outside the Kingdom of Norway.
A party that has a claim for something other than the payment of money can request an interlocutory measure if there is a basis for security. The basis for security for an interlocutory measure will be:
a) when the defendant’s conduct makes it necessary to provisionally secure the claim because the action or execution of the claim would otherwise be considerably impeded, or
b) when it is necessary to make a temporary arrangement in a disputed legal issue in order to avert considerable loss or inconvenience, or to avoid violence which the conduct of the defendant gives reason to fear.
Irrespective of whether you have a party that will not pay its bills or want to secure a claim, it is always important to start the enforcement process as early as possible. You will usually not be alone in claiming money from the debtor and the “first in best dressed” rule applies for payment processes.
Our lawyers have extensive experience from various enforcement processes, both as practicing lawyers (representatives of parties in legal proceedings), special administrator assignments from the district courts, and administrative practice from the execution and enforcement authorities and courts.