When to use it
Use it when you want the money in instalments, and a full settlement is too heavy for the situation. But be clear about what you are giving up: the agreement is not an enforceable instrument. If it is broken, you have to go all the way through the courts before you can levy execution. In nine cases out of ten the voluntary settlement is the right choice — it costs the same to enter into.
It has to be right
The wording is rarely the problem. It is the deadline, the fee and what the letter leaves out — and the mistake costs you the expenses, not the debtor.
- Consider using a voluntary settlement (frivilligt forlig) instead — it costs the same to enter into and it can be enforced
- Provide that the entire outstanding balance falls due immediately on default
- Take a view on interest during the instalment period
- Set an instalment the debtor can realistically keep to — an agreement broken in month two has cost nothing but time
How to fill it in
Most placeholders are trivial. These are not.
- Clause 5 — default
- Without it, only the missed instalment falls due, and you have to go to the bailiff's court for every single payment that is not made.
- Clause 4 — the interest
- Choose. If interest keeps running, the debt grows while the debtor is paying — he needs to know that, or the agreement will end in a dispute.
Frequently asked questions
Why should I choose a voluntary settlement instead?
Because it can be enforced. Same agreement, same amount, same conversation — but if it is broken, you go straight to the bailiff's court instead of having to go through court proceedings first.
How long an instalment period can I accept?
The longer it is, the greater the risk that the debtor goes bankrupt, disappears or defaults along the way. An agreement running for more than four years is rarely realistic.
How to use it
Legal disclaimer. The template is generic and free to use. It is not legal advice and does not take account of the circumstances of your particular case. Rates, deadlines and statutory references change — check them before you use the document. If the claim is large, disputed or heading for court, call us before you send anything.