Best Bankruptcy & Debt Lawyers in Norrköping

About Bankruptcy & Debt Law in Norrköping, Sweden

Bankruptcy and debt law in Norrköping operates within the national Swedish legal framework. If you are an individual or a business in financial distress, Swedish law provides several structured paths. Bankruptcy, called konkurs, is a court led liquidation where a trustee sells assets and distributes proceeds to creditors. Debt restructuring, called skuldsanering, is an administrative process managed by the Swedish Enforcement Authority that can reduce or write off unsecured debts over a payment plan, helping individuals and certain entrepreneurs regain financial stability. For companies that are viable but illiquid, corporate reorganisation, called företagsrekonstruktion, can provide breathing space to restructure debts and operations instead of closing. In Norrköping, bankruptcy and most court related insolvency matters are handled by Norrköpings tingsrätt, while enforcement and debt restructuring are handled by the Swedish Enforcement Authority, commonly called Kronofogden. The municipality also offers free budget and debt counselling, which is often a practical first step.

Why You May Need a Lawyer

People in Norrköping seek legal help with bankruptcy and debt when creditors escalate collection, when wages are being garnished, or when there is a risk of losing a home or business. A lawyer can assess whether bankruptcy, debt restructuring, reorganisation, or a negotiated settlement is best in your situation. If you receive a demand from Kronofogden or a summons from court, quick legal advice can help you object in time and protect your rights. Business owners often need advice about director liability for taxes and payroll, the timing of filing for bankruptcy, and whether a reorganisation plan or a private composition is realistic. Individuals may need help preparing a complete and accurate debt restructuring application, responding to enforcement, or negotiating with creditors to avoid a payment default record. A lawyer can also help you understand which assets are protected, how priority rules affect creditor payouts, and how to use legal aid or insurance to fund representation.

Local Laws Overview

Swedish bankruptcy is governed by the Bankruptcy Act, Konkurslagen 1987:672. A bankruptcy petition is filed with the district court, which decides on bankruptcy and appoints a trustee to take control of the debtor’s assets. The trustee sells assets and distributes proceeds according to the Priority Rights Act, Förmånsrättslagen 1970:979, where secured creditors with pledges or mortgages are paid first. Employees may receive payment under the State wage guarantee, Lönegarantilagen 1992:497, for certain unpaid wages when an employer enters bankruptcy or reorganisation.

Corporate reorganisation is governed by the Corporate Reorganisation Act, Lag 2022:964 om företagsrekonstruktion. The court can grant a stay of individual enforcement, a reconstruction practitioner is appointed, and an accord can be proposed to creditors to reduce debts while the business is rehabilitated. A public composition, called offentligt ackord, requires creditor approval and court confirmation.

Debt restructuring is governed by the Debt Relief Act, Skuldsaneringslagen 2016:675, and a parallel act for entrepreneurs, Skuldsanering för företagare 2016:676. Applications are filed with Kronofogden. If granted, the debtor follows a payment plan, typically five years for private individuals and often three years for qualifying entrepreneurs, after which remaining included unsecured debts are written off. Most debts incurred before the decision are included, while ongoing obligations and secured debts are handled separately. New debts after the decision are not included.

Enforcement is carried out under the Swedish Enforcement Code, Utsökningsbalken 1981:774, by Kronofogden. If a claim is undisputed, Kronofogden can issue an enforceable order, collect by garnishing wages or selling assets, and register a record that credit bureaus may report. Swedish limitation periods are governed by the Limitation Act, Preskriptionslagen 1981:130. In general, a claim becomes time barred after ten years, but consumer claims against individuals held by a trader normally become time barred after three years, and any acknowledgment or payment resets the clock. Consumer credit is regulated by the Consumer Credit Act, Konsumentkreditlagen 2010:1846. Cross border insolvency within the EU may be affected by the EU Insolvency Regulation 2015:848.

Frequently Asked Questions

What is the difference between bankruptcy, debt restructuring, and corporate reorganisation

Bankruptcy is liquidation through court where a trustee sells assets and distributes funds to creditors, and it does not discharge an individual’s remaining debts by itself. Debt restructuring is an administrative process at Kronofogden that sets a payment plan and can discharge remaining unsecured debts after completion. Corporate reorganisation is a court supervised rehabilitation for companies that can lead to a binding composition with creditors while the business continues.

Which court handles bankruptcy cases in Norrköping

Norrköpings tingsrätt is the local district court that typically handles bankruptcy matters for individuals and companies connected to its jurisdiction. The appropriate court depends on where the individual lives or where the company has its registered office.

How does a bankruptcy start and what information do I need

A bankruptcy can be initiated by the debtor or by a creditor through a petition to the district court. The debtor should provide identification, a list of assets and liabilities, recent financial statements for a company, information about ongoing contracts, employees, and any security interests. The court appoints a trustee who will request more details and take control of assets.

Will I lose all my property if Kronofogden enforces a debt

No. Swedish law protects necessary items, called beneficium, such as reasonable clothing, basic household furniture and equipment, and tools needed for your work to a reasonable extent. Kronofogden calculates a protected income amount, called förbehållsbelopp, so that you keep funds for normal living costs before any wage garnishment is set.

How long do payment defaults stay on my credit record

For private individuals, most payment defaults reported by credit bureaus based on Kronofogden records are kept for three years. For businesses, the period is typically five years. Records relating to bankruptcy or debt restructuring can be visible for a similar or longer period depending on the bureau’s policies.

Can tax debts, student loans, or damages be included in debt restructuring

In most cases, unsecured tax debts and government claims, including student loans, can be included if they were incurred before the decision. Secured debts are handled based on the security. Some obligations such as ongoing child support or new debts after the decision are not included. The exact treatment of specific claims is assessed by Kronofogden case by case.

What are the time limits for old debts in Sweden

General claims become time barred after ten years if there is no interruption. Consumer debts against individuals held by a trader usually become time barred after three years. Any acknowledgment, partial payment, or legal action can interrupt and restart the limitation period. Court judgments can extend enforceability further.

As a company director in Norrköping, can I become personally liable for company debts

Limited liability protects owners and directors in most situations, but there are important exceptions. Directors can be personally liable for certain unpaid taxes and social charges under representative liability rules, especially if they do not act when the company is insolvent. Failing to address capital deficiency obligations in a limited company can also trigger personal exposure. Early legal advice is crucial if the company cannot pay its debts.

How does Swedish wage guarantee work if my employer goes bankrupt

If your employer enters bankruptcy or reorganisation, the State wage guarantee can cover unpaid wages and certain other employment related claims for a limited period and up to statutory caps. The bankruptcy trustee or reconstruction practitioner handles the application, and payments are administered via the County Administrative Board. This helps employees bridge the transition.

Is there a court fee to file for bankruptcy or to apply for debt restructuring

There is generally no court fee for a bankruptcy petition by a debtor. Debt restructuring applications are filed with Kronofogden and there is no application fee. Costs can arise during proceedings, and companies may face other fees in related processes, so confirm current costs before filing.

Additional Resources

The Swedish Enforcement Authority, Kronofogden, handles enforcement, summary debt collection orders, and all debt restructuring applications. They provide guidance on forms, payment plans, and protected income calculations.

Norrköpings tingsrätt, the local district court, handles bankruptcy decisions, appoints bankruptcy trustees, and decides on corporate reorganisation applications. Court staff can provide practical information on filing but cannot give legal advice.

Norrköpings kommun offers free budget and debt counselling, called budget och skuldrådgivning, which can help you map your debts, prepare a budget, and complete a debt restructuring application.

The Swedish Tax Agency, Skatteverket, can provide statements of tax debts and information relevant to payment plans or restructuring. The Swedish Companies Registration Office, Bolagsverket, provides information on company status, filings, and registration that may be needed in insolvency or reorganisation.

The Swedish Consumer Agency, Konsumentverket, and the National Board for Consumer Disputes, ARN, can guide consumers with credit disputes and unfair contract terms that may relate to debt problems.

The National Courts Administration, Domstolsverket, provides general information about courts, procedures, and insolvency terms to help you prepare before contacting the court.

Next Steps

Start by making a complete list of your creditors, debts, interest rates, arrears, and any court or Kronofogden documents you have received. Gather proof of income, monthly expenses, bank statements, and for businesses, recent accounts, tax filings, and a list of assets and security interests.

Contact Norrköpings kommuns budget och skuldrådgivning for free, confidential guidance. They can help you stabilise your budget, communicate with creditors, and assess whether a debt restructuring application is suitable in your case.

If there is court action or enforcement pending, or if you run a business facing insolvency, consult an insolvency focused lawyer or advokat promptly. Ask about using legal expenses insurance under your home or business policy, called rättsskydd, and whether you qualify for state funded legal aid, called rättshjälp.

If bankruptcy or reorganisation may be necessary, speak to a lawyer about timing, preparatory steps, and how to protect employees and essential assets. Early action can expand your options, such as negotiating a private composition or applying for corporate reorganisation before value is lost.

Throughout the process, keep communicating with creditors and authorities. Respond to all deadlines from the court or Kronofogden. Save copies of everything you submit and receive. If your situation changes, for example income or family circumstances, inform the relevant authority promptly so payment plans can be adjusted.

This guide provides general information specific to Norrköping and Swedish law. Your situation may involve details that change the analysis, so consider obtaining personalised legal advice before you decide how to proceed.