Best Bankruptcy Lawyers in Borgholm

About Bankruptcy Law in Borgholm, Sweden

Bankruptcy in Sweden, called konkurs, is a formal court process used when a person or a company is insolvent, meaning they cannot pay debts as they fall due and the situation is not temporary. The goal is to collect and sell the debtor’s non-exempt assets, distribute funds to creditors according to statutory priorities, and close the estate. For companies, bankruptcy usually leads to liquidation and closure. For individuals, bankruptcy does not automatically eliminate remaining debts after the case ends, so many private persons consider debt relief, called skuldsanering, instead of or in addition to bankruptcy.

Residents and businesses in Borgholm fall under national Swedish insolvency law. Cases are handled by the competent district court for the area, and a court-appointed bankruptcy trustee manages the estate. Creditors are notified and can file their claims, employees may be protected by a wage guarantee, and certain transactions made before the filing can be challenged and reversed.

This guide explains when a lawyer can help, how local procedures work for people in Borgholm, which laws and authorities are involved, and practical next steps if you need assistance.

Why You May Need a Lawyer

You may need a lawyer if a creditor has threatened or filed a bankruptcy petition against you or your company, or if you are considering filing yourself. A lawyer can quickly evaluate insolvency, respond to petitions, and propose alternatives such as negotiation with creditors, voluntary settlements, payment plans through the Swedish Enforcement Authority, company reorganisation, or debt relief for individuals.

Company directors often need tailored advice about duties under the Swedish Companies Act when there is capital deficiency, about the risks of trading while insolvent, and about personal exposure under personal guarantees or for unpaid taxes and social charges. Early advice can reduce the risk of personal liability and help you document the board’s actions correctly.

Individuals benefit from counsel on what assets are protected, how bank accounts and salaries are treated, and how bankruptcy interacts with debt relief. If you own a home, run a sole proprietorship, or have co-signed loans, specific planning is crucial. A lawyer can also guide you through meetings with the trustee, prepare filings, challenge incorrect creditor claims, and protect you if avoidance claims are raised about transactions made before filing.

Creditors may need a lawyer to file a well-supported petition, secure collateral, monitor the trustee’s administration, contest other creditors’ claims, or pursue avoidance actions to improve recoveries.

Local Laws Overview

Bankruptcy Act (Konkurslagen 1987:672). Sets out when a debtor can be declared bankrupt, how the court process works, appointment and duties of the bankruptcy trustee, claim filing procedures, distributions, and closure of the estate. Includes rules on avoidance of certain pre-bankruptcy transactions, called återvinning, with look-back periods that vary depending on the type of transaction and relationship between parties.

Preferential Rights Act (Förmånsrättslagen 1970:979). Establishes the order in which creditors are paid. Costs of the bankruptcy and mass claims are paid first, then secured creditors to the extent of their collateral. Floating charges through företagsinteckning have a specific priority. Employee wage claims have statutory protection, supported by the state wage guarantee scheme. Many tax claims do not have general priority.

Public Restructuring Act (Lag 2022:964 om företagsrekonstruktion). Provides an alternative for distressed but potentially viable companies. It allows a court-supervised breathing space, negotiation of compositions with creditors, and operational restructuring. This can be a path to avoid bankruptcy if there is a realistic turnaround plan.

Debt Relief Act (Skuldsaneringslagen 2016:675). For individuals with persistent insolvency, the Enforcement Authority can grant debt relief, leading to a fixed payment plan for a limited period and discharge of remaining eligible debts at the end. This is often more suitable than personal bankruptcy for a fresh start.

Enforcement Code (Utsökningsbalken). Regulates enforcement actions by the Swedish Enforcement Authority, including payment orders, attachments, and auctions. Pre-bankruptcy enforcement may be stayed when bankruptcy is opened.

Swedish Companies Act (Aktiebolagslagen 2005:551). Requires a board to act if equity is less than half of registered share capital. If a control balance sheet is not prepared and proper steps are not taken, directors risk personal liability for new obligations. This is highly relevant for struggling companies in Borgholm.

Local court and authorities. Bankruptcy cases for residents and companies in Borgholm are heard by the competent district court for the area, commonly Kalmar District Court. The court appoints a bankruptcy trustee, usually an advocate with insolvency expertise. The Swedish Enforcement Authority handles enforcement and debt relief applications. The County Administrative Board in Kalmar County administers the wage guarantee. Corporate filings and liquidations are handled by the Swedish Companies Registration Office. Tax matters are handled by the Swedish Tax Agency. Public notices are published in Post och Inrikes Tidningar.

Process highlights. A petition is filed by the debtor or a creditor. If the court finds insolvency, it declares bankruptcy and appoints a trustee. The trustee takes control of the assets, secures records, and informs creditors. In larger cases the court may open a claim verification procedure, with a deadline for filing claims. Assets are sold and funds distributed according to priority. After administration, the estate is closed. Individuals remain liable for any unpaid balance unless they obtain debt relief separately.

Frequently Asked Questions

What is the difference between bankruptcy and debt relief for individuals in Sweden

Bankruptcy is a court process that gathers and liquidates non-exempt assets for the benefit of creditors. When the case ends, any unpaid debts usually remain. Debt relief is an administrative process run by the Enforcement Authority that, if granted, sets a payment plan for a limited time and discharges remaining eligible debts at the end. For most private persons seeking a fresh start, debt relief is the primary route.

Which court handles bankruptcy cases for Borgholm residents and companies

Cases from Borgholm are handled by the competent district court for the area, commonly Kalmar District Court. The court decides on opening bankruptcy and appoints a trustee. If you are unsure, a local lawyer or the Swedish Courts information service can confirm the correct court based on your registered address or a company’s registered seat.

Who can file for bankruptcy and how is the process started

Either the debtor or a creditor can file a petition with the district court. A debtor’s petition must include a statement of insolvency and basic financial information. A creditor’s petition usually relies on an undisputed overdue debt and evidence of insolvency, for example a failure to pay after a payment order process. The court may hold a brief hearing. If insolvency is established, the court declares bankruptcy and appoints a trustee immediately.

What happens to my assets and bank accounts after bankruptcy is opened

Control of your attachable assets transfers to the bankruptcy estate managed by the trustee. Bank accounts can be frozen and funds used to pay costs and creditors. Some assets are protected for individuals, such as reasonable personal belongings and tools of trade within statutory limits. Ongoing income after bankruptcy is generally not part of the estate for individuals, but the trustee may claim certain refunds or tax returns. For companies, all assets form part of the estate.

Are my debts wiped out after personal bankruptcy

No. Swedish personal bankruptcy does not provide an automatic discharge. Any unpaid balances usually remain after the estate is closed. To obtain a fresh start, individuals typically apply for debt relief, which can be pursued before, during, or after a bankruptcy depending on circumstances.

How are employees protected if an employer in Borgholm goes bankrupt

Employees may receive payment through the state wage guarantee. The trustee verifies employment and unpaid wages, vacation pay, and certain notice pay. The County Administrative Board in Kalmar County pays approved amounts up to statutory caps and may later claim against the estate. Employees should promptly provide documentation to the trustee to avoid delays.

In what order are creditors paid

The order is set by the Preferential Rights Act. Costs of the bankruptcy and mass claims come first. Secured creditors are paid from their collateral. Claims with special or general priority follow, such as employee claims and floating charges. Unsecured creditors are paid last and often receive only a partial dividend or none if the estate is insufficient.

Can directors or owners be personally liable for company debts

Limited liability protects shareholders, but directors can face personal liability if they fail to act when there is capital deficiency, if they cause damage through negligence, or for certain unpaid taxes and withholding obligations. Personal guarantees, common in bank loans and leases, also create direct liability. Timely legal advice and proper board procedures reduce these risks.

Can transactions made before bankruptcy be reversed

Yes. The trustee can challenge certain transactions under avoidance rules. Examples include gifts, unusually large payments, granting of new security for old debts, or repayments that unfairly favor one creditor. Look-back periods range from months to years depending on the transaction and whether the counterparty was related or knew of the debtor’s insolvency. If successful, assets or value are returned to the estate.

How long does bankruptcy take and do I have to go to court

Simple estates can close within months, while complex estates take longer. As a debtor you may need to attend a brief court session and a creditors meeting, often held at or by the trustee rather than in a courtroom. Costs are paid from the estate before any distribution to creditors. If the estate has little or no assets, the process may be relatively short but there may be no dividend to creditors.

Additional Resources

Kalmar District Court. Handles bankruptcy petitions from the Borgholm area and appoints trustees. Court staff can explain filing requirements but cannot give legal advice.

Swedish Enforcement Authority. Manages payment orders, enforcement, and applications for debt relief. Offers guidance on forms and financial assessments.

County Administrative Board in Kalmar County. Administers the state wage guarantee for employees affected by employer bankruptcy in the region.

Swedish Companies Registration Office. Corporate filings, beneficial ownership, liquidations, and company mortgages are handled here. Useful when a company is in distress or being wound up.

Swedish Tax Agency. Provides information on tax debts, payment plans, and directors’ responsibilities for withholding and social charges.

Swedish Bar Association. Offers a searchable directory of licensed advocates, including specialists in insolvency and bankruptcy who regularly act as trustees.

Borgholm Municipality budget and debt counseling. Free local advice for residents on budgeting, creditor negotiations, and debt relief applications. Contact the municipality switchboard to book an appointment.

Post och Inrikes Tidningar. Official gazette where bankruptcy and creditor notices are published. Useful for tracking deadlines and trustee announcements.

Almi and regional business advisory services. Support for small businesses in financial distress, including turnaround advice and financing options that may complement legal solutions.

Next Steps

Assess your situation promptly. List all creditors, amounts, due dates, and any collateral or personal guarantees. Gather recent bank statements, tax filings, payroll records, contracts, and your company’s accounts if you run a business. A clear snapshot helps a lawyer evaluate options quickly.

Seek early professional guidance. Contact a bankruptcy or restructuring lawyer who practices in the Kalmar region and is familiar with cases from Borgholm. Ask about urgent steps to protect assets, how to communicate with key creditors, and whether a reorganisation or debt relief is realistic. If you are an individual, also contact Borgholm Municipality’s budget and debt counseling for free confidential support.

Stabilise and avoid risky actions. Do not favor one creditor over others, do not grant new security for old debts without advice, and avoid unusual transfers. Keep proper records of all payments and decisions. If you are a company director and suspect a capital deficiency, prepare a control balance sheet with an auditor and document board decisions to limit personal liability.

Choose the right procedure. For businesses with a viable core, explore reorganisation to restructure debts and operations. For businesses beyond rescue, prepare for an orderly bankruptcy to minimize losses and protect employees through the wage guarantee. For individuals, consider debt relief as the main path to a discharge, with or without a bankruptcy depending on assets and enforcement pressure.

Prepare for filings and meetings. Your lawyer can draft or respond to a bankruptcy petition, represent you at court, and liaise with the trustee. Be ready to attend an initial meeting and provide full information. Employees should promptly submit wage and employment documentation to access the wage guarantee.

Plan for life after the case. Individuals should work with the Enforcement Authority or municipal counselors on a debt relief plan if a discharge is needed. Companies should coordinate with the Companies Registration Office on dissolution matters and with the Tax Agency on final reporting. Creditors should calendar claim deadlines and monitor trustee reports for dividend prospects.

This guide is general information, not legal advice. For advice about your specific situation in Borgholm, speak to a qualified Swedish insolvency lawyer.