Instalment plan (afdragsordning)
Also known as instalment agreement, payment plan, payment agreement, repayment plan, paying by instalments, afdragsordning, afdragsplan, betalingsaftale, afbetaling, betalingsplan, tilbagebetalingsplan, gældsafvikling
An instalment plan is an agreement that the debt is paid off in instalments over time instead of in one payment.
In practice
An instalment plan is often the fastest route to the money. A debtor who cannot pay 40.000 kr. today may well be able to pay 3.500 kr. a month — and that is still far better than a lost claim.
What matters is the form. If the agreement is made verbally or by email, it is only a promise. If it is made as a voluntary settlement (frivilligt forlig) with an enforcement clause, you can go straight to the bailiff’s court the day an instalment is missed. Same agreement, same amount — an entirely different consequence.
Remember to address the interest. Unless agreed otherwise, default interest keeps running on the outstanding balance throughout the instalment period.
Where it commonly goes wrong
- The plan is stretched too far. An agreement running over four years is rarely realistic. The longer the term, the greater the risk that the debtor goes bankrupt or disappears along the way.
- Nothing is agreed about what happens on default. The agreement should state that the entire outstanding balance falls due immediately if an instalment is missed.