As creditor there can be several good reasons for filing a bankruptcy petition. E.g. it can be after an unsuccessful debt collection attempt or prosecution, where it turns out that the debtor is insolvent. This means that the debtor in question cannot pay what is due.
What does Bankruptcy mean?
First, the issuance of a bankruptcy decree means that any values and assets, owned by the debtor at the time of the issuance of the bankruptcy decree, must be distributed among the creditors. This is most often done by selling or auctioning off the values and assets.
Thus, you as a creditor, will be able to obtain a dividend of the amount due, depending on the size of the total debt and to what extent the debt is covered by auctioning of the values and assets. In addition, the Danish Bankruptcy Act establishes a ranking between the claims, by which some claims from employees precede ordinary, simple creditor claims and so forth.
Second, the trustee in the bankruptcy estate will investigate whether dispositions have been made that can be overturned.
Thus, values can be retrieved by the bankruptcy estate if possible and will then ultimately be able to be distributed to the creditors.
Finally, in the treatment of the bankruptcy estate, the trustee will ascertain whether any dispositions have been made, which can be characterized as grossly unsound business conduct or negligence. If this is the case, the management of the bankrupt company may be subject to bankruptcy-related disqualification for up to three years.
During this period, the person subject to bankruptcy-related disqualification may not act as overall management in a company with limited liability but may well conduct business with personal liability.
To file for bankruptcy, you must pay a court fee of DKK 750.00. You must also provide security of normally DKK 40,000.00 as of June 1st 2017.
The amount will be repaid in full or in part if the bankruptcy estate shows assets that exceed the value of the security.
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Our lawyers have extensive experience with insolvency law, and you are always welcome to contact us for a free, non-binding conversation about your case.