Abstract
The Norwegian Consumer Bankruptcy Act was passed 17 July 1992 to give persons with "serious debt problems (. . .) the possibility to gain control over their economy." The Act contains provisions for negotiations between the debtor and the creditors, for court rulings on repayment plans, and for a discharge of the debts not covered by the plan. The origin of the Act was a social welfare approach to the problem of overindebtedness. However, the Act embodies an inherent contradiction in that it also includes moral elements in order to prevent it from exerting a negative influence on the perceived obligation to pay one's debts. This contradiction has given the courts a wide scope of discretion in the application of the Act. As a result, cases are treated differently in different jurisdictions. Some judges put more emphasis on moral evaluations than others. This situation also gives room for strategic action from creditor groups who typically are repeat players in cases of consumer bankruptcy. In this way the more objective, social welfare approach of the Act is undermined.
Similar content being viewed by others
REFERENCES
Askeland, B. (1995). Når skal en tvungen gjeldsordning vare lenger enn fem år (When should an enforced payment plan extend for longer than five years)? Bergen: University of Bergen. Skriftserie No. 57.
GOA (1996). Informasjonsmateriell fra Gjeldsofferaksjonen (Information material from the Action Group for the Overindebted).
Graver, H. P. (1996). Gjeldsordningsloven med kommentarer (The Consumer Bankruptcy Act with commentaries). Oslo: TANO.
Ongre, C., & Akselsen, J. (1994). Rettslig løsning av privates gjeldsproblemer (Legal solution to debt problems of private individuals). Mimeograph. Oslo: University of Oslo, Institute for Sociology of Law.
Parliamentary Committee on Proposed Act for Consumer Bankruptcy (1991-1992). Report. Innst. O. nr. 90. Oslo: The Norwegian Parliament.
Poppe, C. (1994). Gjeldsordningsloven förste leveår (The first year of the Consumer Bankruptcy Act). Oslo: The National Institute for Consumer Research. SIFO rapport 1-1994.
Rokhaug, E. (1994). Gjeldsordningsloven i teori og praksis (The Consumer Bankruptcy Act in theory and practice). Oslo: Ministry of Family Affairs.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Graver, H.P. Consumer Bankruptcy: A Right or a Privilege? The Role of the Courts in Establishing Moral Standards of Economic Conduct. Journal of Consumer Policy 20, 161–177 (1997). https://doi.org/10.1023/A:1006882617499
Issue Date:
DOI: https://doi.org/10.1023/A:1006882617499