This thesis deals with public arrears, which companies owes. It is in perspective of how the public sector isdealing with these arrears and describe which options and tools they can use, to recover them from thecompanies. 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 theseclaims 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 actupon this and make long term solutions to reverse the development. This development has a negativeimpact on the total liquidity of the state accounts. The collection of the arrears contributes to the financingof the public sector.The thesis will contain a review of the rules of the law, that regulate recovery of debt to the public sector. Itis including regulations regarding the expiration date of debt under recovery which has been furtherextended due to defective claims the old debt collection system EFI/DMI. In continuation of these defectiveclaims there has been a long-lasting task to process and solve these claims and afterwards transfer them tothe new debt collection system PSRM.The thesis concludes that the Danish Debt Collection Agency has various recovery options to recover thepublic arrears from the companies. In each case the Agency will assess which recovery option, that will bethe most appropriate to be used to claim the arrears from the company, in consideration of their financialsituation.