Debt Collection Agency Norway
Amicable Debt Collections Norway
1. General information
Cosmopolite Collections maintain a professional collection process, focusing on the relationships between our clients and their debtors at all times. Our team of collection specialists carry out the collection process in-house, contacting debtors both verbally and in writing whilst adhering to federal and state laws.
1.2. Local agents
At this time, we do not have the ability to visit debtors in Norway. However, if the debtor wishes to visit our premises, we will gladly arrange a face-to-face meeting to discuss the situation.
1.3. Interest
Cosmopolite Collections always charge interest to debtors calculated from the base rate set by the National Bank of Norway, plus 8% on a daily basis. There are two alternatives: To calculate the interest rate as agreed between the creditor and the debtor To calculate the interest rate according to Norwegian regulations based on the rate fixed by the National Bank of Norway (plus 8% per year). This rate is fixed twice a year on 1st January and 1st July. The second alternative will always occur if the interest rate is not agreed between the creditor and the debtor. From a cultural point of view, Norwegian debtors are used to paying late payment interest.

1.4. Debt Collection Costs Norway
In Norway, debt collection costs are chargeable to debtors, representing the creditor’s claim for late payment.
All costs depend on the amount of the outstanding debt.
2. Legal Debt Collections Norway
2.1. General information
Entering into legal proceedings is only possible with a written notice to the debtor that must include: A 14-day notice period The name of the creditor The specifics of the debt (e.g. interest rate, date, amount, etc.) A warning that non-payment will lead to legal action and further costs.
The debt needs to be determined to be enforceable. If the debt is undisputed, a bailiff will issue a payment order, which equals a judgment. If the debtor disputes the debt, the file is assigned for trial handling regardless of the reason or the seriousness of the dispute.
If a judgment is obtained and the debtor does not pay accordingly, the file will be handed over to the bailiff’s court for execution. Wage retention is the toughest measure the enforcement office can enforce.
This requires the debtor’s employer to withhold a certain portion of the debtor’s salary and send the money to the bailiff, who then reports the amount to the creditor.
2.2. Required documents
In order to apply the legal proceedings, we need copies of the contract, invoices and a clear statement of account indicating payments and credit notes that have been booked against the outstanding invoices.
In the case of a regular lawsuit procedure, copies of the complete contractual documentation should be available starting with the contract, orders, confirmations, delivery notes and invoices. Every stage of the trading relationship must be provable by documentation.
In case of dispute, all notes of conversations between the creditor and the debtor via letter and email that may assist our lawyers should be kept.
In the case of oral negotiations, we need the visit reports and the names of the witnesses.
2.3. Lawsuit
The regular lawsuit procedure is either initiated directly after the amicable collection has failed due to a dispute by the debtor or directly after the legal dunning procedure if the debtor has appealed.
A written pre-procedure is usually issued. Both the plaintiff and the defendant must exchange opinions and proofs by letter until the judge believes all relevant information needed to make a judgment has been received.
In this case, a hearing is scheduled, during which both parties must be present.
After the hearing, the judge sets a date to publish the final judgment, and both parties will be informed about the outcome in writing by the court.
2.4. Debt Collection Costs Norway
All costs depend on the amount of the outstanding debt. There are different fees that can apply during legal proceedings, making it difficult to predict the total costs.
In addition to this, costs for witnesses and/or experts might also arise. A cost estimation can be provided on a case-bycase basis should legal action becomes necessary.
2.5. Expected time frame
The average duration of a legal process is up to 12 months or longer, depending on the complexity of the case and the availability of the judge and the lawyers on all sides.
2.6. Interest and costs in the legal phase
Extrajudicial interest and costs can be claimed as part of the outstanding monies during the legal proceedings. Normally the losing party has to bear the costs of the legal proceedings if it goes to trial.
In the case of a legal settlement, the parties normally bear their own costs for court and lawyers’ fees.
3. Insolvency proceedings
3.1. General information
The aim of the insolvency proceedings is to pay out all creditors with the same percentage of the debts by liquidating the assets of the debtor company or by collecting the enforceable income of the individual who is declared bankrupt.
There are three insolvency proceedings in Norway:
-Enforced dissolution
-Reorganisation
-Bankruptcy.
3.2. Proceedings
After the debtor or a creditor files for insolvency of the debtor, a preliminary liquidator is appointed to check if sufficient assets are available to cover the costs of the proceedings (court costs and costs of the liquidator).
If these costs are deemed to be covered, then insolvency proceedings start and a liquidator will be appointed (usually this is the preliminary liquidator). Otherwise, the court will reject the declaration of bankruptcy due to insufficient assets.
The creditors can then lodge their claims and take back any goods delivered under retention of title.
For goods in stock, the liquidator can choose whether to pay the original price to the creditor or to return the goods. After the proceedings start, lodging claims is possible within a given deadline.
The liquidator can either accept a lodged debt or dispute it. If the claim is disputed, the creditor may only file a claim in court to prove the justification of their claim when further documentation does not convince the liquidator to confirm the debt.
At the end of the proceedings, all creditors with confirmed debts will receive a dividend if there are enough assets in the estate. Often there is no dividend at all.
3.3. Required documents
In order to lodge a claim on behalf of our client in undisputed claims, Cosmopolite Collections need only copies of the invoices.
3.4. Expected time frame and outcome
The expected time frame for an insolvency estate case in Norway is one to three years. Often insolvency estate cases are closed with no dividend at all.