Simple Law Change Could Help Danish Creditors Pursue Non-Paying Debtors

Private creditors in Denmark are struggling with individuals who possess the means to repay debts but deliberately choose not to. Christian Rützou Hornskov, a postdoctoral researcher and law PhD at the University of Copenhagen, argues that a simple legislative amendment could significantly improve the situation for these creditors.

Hornskov proposes altering just one paragraph in the Danish administration of justice act. He believes this change would make it considerably more difficult for debtors to evade their financial obligations when they are demonstrably capable of paying. This contrasts with the current system, where debtors can sometimes exploit loopholes or procedural complexities to avoid repayment, even after a court has ruled against them.

The article uses the hypothetical example of Thomas, an electrician, who completed work for a private client but was not paid. Thomas won his case in court, but the client still refused to pay. Armed with a judgment, Thomas then proceeded to the enforcement court, the body responsible for enforcing payment orders when a debtor is unwilling or unable to comply. Hornskov suggests that the proposed legal change would strengthen the position of individuals like Thomas, ensuring that court judgments are more readily honored.