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How entrepreneurs apply for debt restructuring

If you are an entrepreneur or a close relative of an entrepreneur, you can apply for debt restructuring for entrepreneurs or "ordinary" debt restructuring. It is your personal finances that will be restructured, not the company's.

The idea behind debt restructuring for entrepreneurs is to embolden you to start a business. If it doesn't work, you should be eligible for debt restructuring, get back on your feet, and maybe start a new business.

This is how it works

Debt restructuring for entrepreneurs goes on for three years from decision on initiation.

The proceedings are the same as for “ordinary” debt restructuring. However, special requirements apply to you seeking debt restructuring for entrepreneurs. One example is that your business must have been operated or is currently operated in a serious manner. Another example is that you must be able to pay during your debt restructuring.

You apply using the form Application Debt restructuring for entrepreneurs. You can download the form or order it. The form is in Swedish.

Application Debt restructuring for entrepreneurs

Go to Form

When you apply

You send your application to us.

Send letter or application

Need help?

You can contact a budget and debt adviser for help with your application. You can find more information and contact details on the Hello Consumer website:

Get help with budget and debt issues

You are eligible for debt restructuring for entrepreneurs if you are — or have been — involved in economic activity. By involved we mean you who either

  1. operate as a sole trader or represent a legal person, such as a limited company or trading partnership, or
  2. has previously operated as a sole trader or represented a legal person.

Representatives include, for example,

  • executives
  • owner
  • board of directors
  • CEO.

Other representatives may also apply

A representative of other legal persons can also apply for a debt restructuring for entrepreneurs, for example if you represent an economic association.

Close relatives are eligible for debt restructuring

In addition, close relatives of these groups are eligible for debt restructuring for entrepreneurs or debt restructuring. Close relatives include

  • husband, wife, and partner
  • cohabitant
  • parent
  • siblings
  • children and the children of husband, wife, partner, or cohabitants child.

Three different categories of requirements

The requirements you need to meet depend on which way you are or have been involved in the economic activity. There are three different categories.

You must belong to one of the following three categories:

  • You who are involved in economic activity today: The company must be doing well and your debts must not come from the current activities.
  • You who have previously been involved in economic activity: At least 70 percent of your debts must have come from those activities.
  • You who are closely related to someone who is — or has been — involved in economic activity: At least 70 percent of your debts must originate from the entrepreneur's previous business.

You must also meet additional requirements

Regardless of which of the three categories you belong to, there are additional requirements. You must fulfil all of them:

  • You are so indebted that you cannot in any way pay your debts for many years. As an active entrepreneur, it is common for your future earnings to be unclear, but we still estimate your payment possibilities. For example, we look at
    • your qualifications
    • the salary level in your industry
    • how your business is doing
    • how you assess your future earnings.
  • A debt restructuring must be reasonable considering your personal and financial circumstances. We make about the same assessment as for debt restructuring, but we also assess in what way a debt restructuring would increase your chances of running a business again.
  • The economic activity must be carried out — or have been carried out — in a serious manner.
  • You must live, work, or have your debts in Sweden.
  • You must not currently be subject to a trading prohibition.
  • You need to be able to pay at least one seventh of the price base amount every three months. You can find more information on Statistics Sweden's website.

Price Base Amount

You choose which debt restructuring to apply for — debt restructuring or debt restructuring for entrepreneurs. The approach and process are not very different. The difference is mainly the requirements imposed on you who apply.

Debt restructuring for entrepreneurs is more comprehensive than an application for debt restructuring and you need to provide more details and more detailed information. For example, you need to specify your debts and file additional documents for your company.

Debt restructuring for entrepreneurs

  • You pay for three years.
  • You pay during all the months of the year.
  • You cannot get a shorter payment plan.
  • You must be able to pay at least one-seventh of the price base amount per quarter during your debt restructuring.
  • You can choose to pay monthly, semi-annually, or quarterly.

For you to get a full picture of debt restructuring, it's good if you also read the information on debt restructuring.

Apply for debt restructuring

Can you keep running a business?

There is no formal obstacle to running a business for you who have debt restructuring.

Remember

It is important that your business is managed in compliance with applicable rules and that the company is able to pay its running costs as they become due.

If you go into personal bankruptcy

If you or one of your creditors force you into personal bankruptcy, your application for debt restructuring is no longer valid — we will dismiss your application. You can reapply once the bankruptcy is completed.

Debt restructuring more than once

You can get another debt restructuring, even if you've had debt restructuring in the past. But you need special reasons to be eligible for debt restructuring again. Few people are granted debt restructuring a second time. We especially look at the reason why you have incurred new debts and whether your conditions for remaining debt-free have changed.

If you have previously had debt restructuring that was cancelled (rescinded), we look at the reason why it was cancelled. We also look at whether your conditions for becoming debt-free have changed.