Konkursinfo - FAQ

In the FAQ section, you will find answers to questions and a further description of the concepts used in Konkursinfo.

Find the answers to your questions below

What should I do if I have a claim against a bankruptcy estate?
How do I calculate and file my claim?
Can I expect payment of my claim and, if yes, when?
I have a claim for an asset in the bankruptcy estate
Will I be informed of the affairs of the bankruptcy estate?
What do I do if my employer has been declared bankrupt?
May I do anything on behalf of my company if my company has been declared bankrupt?
My landlord has been declared bankrupt
Am I entitled to a tax deduction for my loss?


GENERAL INFORMATION ON BANKRUPTCIES


Who is the trustee?
What is the role of the trustee?
What is meant by order of priority?
Who is creditor in a bankruptcy estate?
What is meant by dividend?
What is meant by the reference date?
What is meant by the date of the bankruptcy order?
What is a register of debts and claims?
What is meant by voidable transaction?
What is meant by insolvency?
What is meant be disqualification?
I want another trustee (election of trustee)
I wish to file a petition for bankruptcy (own petition or creditor petition)
What can I do if the Danish Business Authority files for compulsory dissolution of my company?
What can I do if the bankruptcy court decides to compulsorily dissolve my company?
What is meant by adjudication of claims?

 

Frequently asked questions

What should I do if I have a claim against a bankruptcy estate?

If you believe that you have a claim against a bankrupt company or individual, you must arrange for your claim to be filed with the bankruptcy estate as soon as possible. Once your claim has been filed, you will be registered as a creditor of the estate, and you will receive an e-mail confirming receipt of your claim and informing you of the number of your claim in the register of debts and claims. You can file your claim here.

How do I calculate and file my claim?

Before filing a claim with a bankruptcy estate, you need to calculate the claim as at the date on which the relevant company or individual was declared bankrupt (the date of the bankruptcy order). This means that your claim is the amount owed to you as at that date, including interest. The amount must be calculated in a manner allowing trustee to see which part of the amount is the original claim (the principal) and which part is interest, if applicable. The claim filed must be accompanied by documentation, for example in the form of invoices, sales contracts, pay slips, a judgment, etc. You can file your claim here.

Can I expect payment of my claim and, if yes, when?

The trustee will only consider a claim if there seems to be sufficient funds in the estate to pay that type of claim in full or in part (dividend). See more about the different claim types here.
The trustee will (if relevant) consider the claims at a meeting for the adjudication of claims, which will typically take place in the trustee's office. The time of the meeting will be announced in the Danish Official Gazette, and all creditors whose claims cannot be approved will be notified by the trustee by e-mail. 

I have a claim for an asset in the bankruptcy estate

If you hold the legal title to an asset in the possession of the bankruptcy estate, you will be entitled to receive delivery of the asset from the trustee. Your title to the asset may be due to the fact that the now bankrupt company/individual has borrowed the asset from you, or that you believe to have retained title to the asset. If you have such a claim for an asset, you will be referred to as a secured creditor. 

If you believe that you have a secured claim, you must file your claim with the trustee as a "secured claim", describe in detail the background for your claim and attach documentation for the claim. The trustee will then consider your claim for delivery and contact you.

You can file your secured claim here (section 82 of the Danish Bankruptcy Act)

Will I be informed of the affairs of the bankruptcy estate?

Within one week of the date on which an individual or a company is declared bankrupt (the date of the bankruptcy order), the trustee will notify all known creditors of the bankruptcy (typically by letter unless the trustee has access to the e-mail addresses of the creditors). Subsequently, the creditors will receive updates as follows:

 

What do I do if my employer has been declared bankrupt?

If your employer has been declared bankrupt, you must attend work unless otherwise notified by the trustee. 

If you do not receive pay, holiday allowance, etc., you should file a claim with the Danish Employees' Guarantee Fund ("Lønmodtagernes Garantifond" or "LG"). The claim must be filed within four weeks of the date of the bankruptcy order. 

LG is an insurance fund ensuring that in case of an employer's bankruptcy, the employees will still receive their net pay (after tax) up to DKK 160,000. LG can disburse amounts relating to pay, bonus, holiday allowance, pension, labour market contributions, compensation for lack of pay in the notice period, pay during sickness or maternity/paternity absence, etc. Note that money received from LG is taxable income, but SKAT (the Danish Customs and Tax Administration) will credit the amounts calculated by LG.

You can find more information about LG, your rights and how to file a claim with LG on www.borger.dk.

You should also file a claim in the event of the bankruptcy estate's failure to pay. Some parts of your pay claim may not be covered by LG; they will instead be paid by the bankruptcy estate. You can file your claim here.

You should remember to notify the trustee that you have filed your claim with LG and what you have received from LG, if relevant.

May I do anything on behalf of my company if my company has been declared bankrupt?

If your company has been declared bankrupt, you are no longer allowed to make any transactions on behalf of the company; the trustee will replace the management of the company. This means that only the trustee will be allowed to act on behalf of the company. The company's management and owners up to the date of the bankruptcy are therefore not allowed to continue the operations of the company nor to incur any debts or other obligations on behalf of the company.

My landlord has been declared bankrupt

As a tenant, you are protected by the Danish Rent Act. This means that your landlord's bankruptcy will basically have no impact on you as a tenant. However, since the trustee will take over the operation of the property on behalf of the bankruptcy estate, the trustee will typically notify you of the bankruptcy and inform you that future rent, etc. must be paid into an account with the trustee. 

Am I entitled to a tax deduction for my loss?

If you have a claim against a bankrupt company or individual, your claim will probably not be covered 100%. Once it has been established that your claim will not be fully covered, you may be entitled to a tax deduction for the loss. 

The trustee will as soon as possible inform you of the expected dividend (in the creditor information letters and on the bankruptcy estate's page on Kromann Reumert's bankruptcy site (to which you will have access if you have filed a claim); based on that information you will be able to make a (preliminary) tax deduction for your loss. The final dividend and, consequently, your final loss will appear from the final creditor information letter, which will be posted on the bankruptcy site in connection with the closing of the estate.

General information on bankruptcies:

Who is the trustee?

The bankruptcy estate will be administered by a person appointed as trustee. The bankruptcy court appoints the trustee (typically a lawyer). 

What is the role of the trustee?

The trustee is responsible for safeguarding the overall interests of the estate and the creditors. This implies, among other things, that the trustee is responsible for selling assets, recovering receivables, assessing claims filed, and paying dividend (if relevant) to the creditors of the bankruptcy estate. Also, the trustee must on an ongoing basis inform known creditors of the progress of the bankruptcy proceedings.

The trustee represents the bankruptcy estate in all respects, so it is the trustee (the responsible liquidator) that you ought to contact if you have questions to or about the bankrupt company. Contact details on the trustee can be found on Kromann Reumert's bankruptcy site - link to front page - search bankruptcy estate. 

What is meant by order of priority?

The order of priority is the order in which the creditor classes of an estate will be paid. All claims in one class of creditors must be paid in full before the next lower-ranking class of creditors can get paid. The order of priority is defined in sections 93-98 of the Danish Bankruptcy Act: 

Section 93: Costs of estate administration (pre-preferential claim)
Section 94: Claims relating to preceding restructuring or liquidation proceedings, etc. (preferential claims)
Section 95: Employee claims, including in respect of pay, holiday allowance, etc. (preferential claims)
Section 96: Special tax claims (preferential claims)
Section 97: Invoice claims and other ordinary receivables (ordinary claims)
Section 98: Claims relating to interest, fines, gifts, etc. (deferred claims)

Above claims are ranked in order of priority. Consequently, section 93 creditors rank highest and will be entitled to payment first. 

Who is creditor in a bankruptcy estate?

A creditor in a bankruptcy estate is a legal or natural person owed money by a bankrupt company or individual.

What is meant by dividend?

If an individual or a company is declared bankrupt, the reason is that he/she/it cannot fully pay its creditors and is therefore insolvent. If, on closing of the bankruptcy estate, the estate has sufficient funds to pay some of its creditors, they will typically be paid only a certain percentage of their claims. That percentage is referred to as the dividend. Creditors within the same class of creditors will receive the same (pro rata) percentage (the same dividend). 

Accordingly, dividend does not mean the money amount received by each creditor, but rather the percentage (for example 10%) received by a certain class of creditors.

What is meant by the reference date?

The date of the bankruptcy court's receipt of the petition for bankruptcy is referred to as the "reference date". The reference date will be used as deadline for, for example, the trustee's assessment of voidable transactions, if relevant. 

What is meant by the date of the bankruptcy order?

The date of the bankruptcy order (the date of bankruptcy) is the date when the bankruptcy court issues the bankruptcy order and initiates the bankruptcy proceedings. Accordingly, the date of the bankruptcy order is the date of commencement of bankruptcy proceedings against a natural or legal person.

What is a register of debts and claims?

A register of debts and claims is an electronic list of all claims filed with the estate. The register of debts and claims is updated by the trustee on an ongoing basis. Each claim filed is given a unique number - referred to as the claim number. If possible, please always indicate the claim number when contacting the trustee. 

What is meant by voidable transaction?

The bankruptcy estate may reverse voidable transactions made by the debtor prior to the bankruptcy. A voidable transaction is, for example, an expensive gift given by the company or individual one month before the reference date. As part of the estate administration, the trustee will investigate the occurrence of any voidable transactions. 

What is meant by insolvency?

Bankruptcy proceedings against a company or an individual can only be initiated if it is established that the company or individual (debtor) is insolvent. This is the case of the debtor does not have sufficient funds to pay his/her/its bills on time. According to the Danish Bankruptcy Act, a debtor is insolvent if the debtor cannot pay his/her/its obligations "as they fall due". In other words, insolvency means inability to pay. 

However, a debtor is not insolvent if the inability to pay is only temporary. It is for the debtor to render probable that the inability to pay is temporary. This means that the debtor must prove with some degree of certainty that he/she will soon again be able to pay his/her creditors on time. It is not sufficient for the debtor to just hope that the financial situation will improve. 

What is meant be disqualification?

Disqualification means that an individual is prohibited from participating in the management of a business. Disqualification may be ordered if the individual has neglected his/her obligations as manager in a company or is guilty of criminal offences. The trustee is responsible for examining the affairs of the bankrupt company and for notifying the bankruptcy court if the trustee finds reasons to initiate disqualification proceedings. 

According to the Danish Bankruptcy Act, an individual may be subject to disqualification if he/she because of "highly irresponsible business conduct is unfit to participate in the management of a business". Disqualification will normally be imposed for a period of 3 years.

An individual subject to disqualification will only be allowed to participate in the management of a company if he/she accepts personal and unlimited liability for the company's obligations. The individual can also be completely prohibited from participating in the management of a business if he/she has previously been subject to disqualification. However, the individual is allowed to (co-)own a company operated by another management.

I want another trustee (election of trustee)

If you, as a creditor, wish to have another trustee elected instead of the existing trustee, you can write to the bankruptcy court about your wish. You must write to the bankruptcy court no later than three weeks after the date of announcement of the bankruptcy in the Danish Official Gazette. 

If the bankruptcy court receives a request for election of a new trustee, the court must summon a meeting of creditors. All known creditors will receive further information.

I wish to file a petition for bankruptcy (own petition or creditor petition)

Creditor petition:

If you wish to file a petition for bankruptcy against an individual or a company, you may file a creditor petition. It is a requirement that you or your company are/is a creditor, i.e. you or your company must have an unpaid claim against the debtor. It is generally also a requirement that the claim is due for payment. In addition, you must have a legal interest in the bankruptcy of the debtor. This means that it must make a difference to you as a creditor that the debtor is declared bankrupt. If your claim is fully secured, for example by a charge over a property, so that you will be able to receive full payment by enforcing the charge, the bankruptcy court may reject the bankruptcy petition. 

The bankruptcy petition must be filed with the bankruptcy court associated with the business address of the debtor company (or the private address of the debtor individual). The petition must be in writing and must include precise details about the identity of the debtor and the reason for the bankruptcy petition. 

Note that you must provide security for the costs of the bankruptcy proceedings if you file a bankruptcy petition. The security required by the bankruptcy court is normally around DKK 40,000, but the amount varies. 

You can contact Kromann Reumert, if you have questions concerning the filing of a bankruptcy petition and need assistance in that regard. 

Own petition:

It is possible to file a petition for your own bankruptcy or your own company's bankruptcy. If you wish to initiate bankruptcy proceedings, you must file a written bankruptcy petition with the bankruptcy court associated with your private address or the business address of your company. The bankruptcy petition must be in writing and must be accompanied by a list of your/the company's assets or liabilities and a list of all of your/the company's creditors. 

It is a condition for being declared bankrupt that you/your company is insolvent. If you declare to the bankruptcy court that you/your company is insolvent, the bankruptcy court will normally grant the bankruptcy petition.

Note that the bankruptcy court will require a cash security deposit of typically DKK 30,000 for the costs of the bankruptcy proceedings.

You can contact Kromann Reumert, for questions or assistance related to the filing of a bankruptcy petition.

What can I do if the Danish Business Authority files for compulsory dissolution of my company?

The Danish Business Authority may decide to file a petition with the bankruptcy court for compulsory dissolution of a company. If you receive notice that your company is subject to such petition for compulsory dissolution but do not want the company to be dissolved, you will usually be allowed a chance to re-open the company. 

You should contact the Danish Business Authority as soon as possible if you wish to re-open the company. 

However, please note that the bankruptcy court will issue a decision about compulsory dissolution of the company and appointment of a liquidator, after which you will have to cooperate with the liquidator in the re-opening.

You can read more about re-opening of companies subject to compulsory dissolution in the guidance issued by the Danish Business Authority and in sections 231 and 232 of the Danish Companies Act, which describe the re-opening requirements. 

Note that the deadline for re-opening is very tight, and that it is not possible to re-open a company that has previously, during the preceding 5-year period, been subject to compulsory dissolution.

What can I do if the bankruptcy court decides to compulsorily dissolve my company?

Upon issue of a decision to compulsorily dissolve your company, the bankruptcy court will appoint a liquidator. You will then be required to cooperate with the liquidator.

If you wish to re-open the company, you must provide security for the costs associated with the liquidator's work in connection with the re-opening. Re-opening of the company by the Danish Business Authority will be subject to the liquidator's consent.

You can read more about re-opening of companies subject to compulsory dissolution in the guidance issued by the Danish Business Authority and in sections 231 and 232 of the Danish Companies Act, which describe the re-opening requirements. 

Note that the deadline for re-opening is very tight, and that it is not possible to re-open a company that has previously, during the preceding 5-year period, been subject to compulsory dissolution.

What is meant by adjudication of claims?

If the trustee expects a dividend (payment in full or in part) for the claims filed by a certain class of creditors, the trustee will arrange for those claims to be adjudicated. Prior to the meeting for the adjudication of claims, the trustee will assess whether to approve or reject each individual claim. A claim may for example be rejected if the trustee has not received sufficient documentation for the claim. The trustee will then make a recommendation for rejection or approval of each individual claim and will notify creditors whose claims have been recommended for rejection. At the same time, all creditors will be summoned to a meeting for the adjudication of claims. The time of the meeting will also be announced in the Danish Official Gazette. 

At the meeting for the adjudication of claims, creditors will be able to raise objections to the trustee's recommendations. The trustee will subsequently decide whether the claim should be approved or rejected. If the trustee rejects your claim, you will be notified in writing.