This thesis deals with public arrears, which companies owes. It is in perspective of how the public sector is
dealing with these arrears and describe which options and tools they can use, to recover them from the
companies. It will also intend to highlight what challenges there are with the recovery of the arrears.
When the public creditors have concluded that they are unable to collect the claim from the debtors these
claims will be handed over for recovery by The Danish Debt Collection Agency (Gældsstyrelsen).
It appears that in recent years the debt to the public sector has been increasing. The public sector must act
upon this and make long term solutions to reverse the development. This development has a negative
impact on the total liquidity of the state accounts. The collection of the arrears contributes to the financing
of the public sector.
The thesis will contain a review of the rules of the law, that regulate recovery of debt to the public sector. It
is including regulations regarding the expiration date of debt under recovery which has been further
extended due to defective claims the old debt collection system EFI/DMI. In continuation of these defective
claims there has been a long-lasting task to process and solve these claims and afterwards transfer them to
the new debt collection system PSRM.
The thesis concludes that the Danish Debt Collection Agency has various recovery options to recover the
public arrears from the companies. In each case the Agency will assess which recovery option, that will be
the most appropriate to be used to claim the arrears from the company, in consideration of their financial
situation.