Swedish inquiry proposes easier debt relief and three-year plans

A Swedish inquiry would make it easier for people who cannot repay long-term debt to qualify for debt restructuring and shorten the standard payment plan from five years to three.

Under SOU 2026:43, a person would meet the insolvency test when they are not expected to repay their debts within six years. Kronofogden would receive a more proactive role, including helping people use agency records and prepare applications.

The proposal would also change how overdue consumer-debt payments are allocated. Payments would reduce default interest last, allowing more of each payment to cut the principal. Contract terms charging interest on default interest would be restricted.

The shorter three-year plan would remove the current two payment-free months each year. The inquiry estimates that several thousand more debt-restructuring applications could be approved annually.

It does not recommend automatically expiring old consumer debts. The inquiry considered absolute prescription but judged it too poorly targeted, despite drafting a model because its mandate required one.

The proposals now go to consultation. Most restructuring changes are proposed for 1 July 2028, while the new payment-allocation rules would begin on 1 January 2031. The Government would still need to prepare legislation and win parliamentary approval.

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