Exemption for necessities (trangsbeneficiet)
Also known as exempt property, living allowance, beneficium, trangsbeneficiet, rådighedsbeløb
The exemption for necessities is the protection that keeps a debtor's essential possessions and a reasonable living allowance out of reach of attachment.
In practice
Not everything can be attached. The exemption for necessities keeps out of reach whatever the debtor and their family need for a modest home and a modest standard of living: a bed, a table, a refrigerator, clothing, and tools of the trade within reasonable limits.
In practice, that means private household effects are rarely worth pursuing. What is left once the exemption has been applied is usually not worth an auction.
For a commercial creditor, the value therefore lies elsewhere: in the car, in the property, in the shareholding, in the amounts owed to the debtor by third parties.
Where it commonly goes wrong
- Going after household effects on principle. It costs more than it yields, and it rarely makes the debtor any more willing to pay.