New deal targets debt forgiveness relapse

A political agreement has been reached in Denmark to condition the forgiveness of public debt on the absence of criminal activity for five years. If crime is committed within this period, the debt is reinstated. This change, supported by a broad majority in the Danish Parliament, aims to prevent criminals from taking advantage of debt relief. Previously, gang members could have debt forgiven through exit programs with positive assessments from authorities. However, if they relapsed into crime, the forgiven debt had no consequences. From the start of the year, this will change. Since early 2024, out of 2,153 applicants, 467 individuals had their public debt forgiven. Tax Minister Rasmus Stoklund emphasizes the importance of this opportunity, particularly for young people trying to correct their lives. Under the new rules, debt forgiveness can be revoked if an individual is charged and subsequently convicted of a crime, even if the conviction occurs after the five-year period.