Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Bankruptcy law in Copenhagen, Denmark, comprises a set of rules and procedures set out by the Danish Bankruptcy Act. This Act can declare a company or an individual insolvent if they cannot meet their financial obligations. Bankruptcy proceedings are usually court-administered and aim to ensure an equitable distribution of the debtor's assets among creditors. Creditors may include suppliers, banks, the state (for taxes), and employees (for unpaid wages).
If you are facing financial difficulties and are unable to repay your debts, a bankruptcy lawyer can guide you through the complex process of declaring bankruptcy. Lawyers provide advice on bankruptcy options, help with legal paperwork, represent you in court, and negotiate with creditors on your behalf. Additionally, businesses seeking to restructure their debts or individuals wanting to protect their assets may need a lawyer's guidance to utilize bankruptcy provisions effectively.
The Danish Bankruptcy Act establishes how insolvency proceedings are undertaken. Key aspects relevant to Copenhagen include: a debtor can be declared bankrupt if they are insolvent and cannot meet their financial obligations; while businesses can opt for reorganization instead of dissolution, individuals can apply for a debt relief scheme. After bankruptcy declaration, an estate in bankruptcy is created and controlled by a trustee appointed by the court. Creditors will have to file a proof of claim to secure their interests. Also, the law obligates bankrupt individuals to take part in compulsory debt counselling.
No. Certain debts such as child support, alimony, and some tax debts cannot be discharged in bankruptcy.
Bankruptcy usually involves liquidating the debtor's assets to pay off creditors. In contrast, reorganization involves restructuring debts to allow the debtor to function while repaying creditors over time.
The duration varies depending on the complexity of the case and whether it’s a complete bankruptcy or a reorganization. Typically, it may take from a few months to several years.
Not necessarily. Certain assets, such as specified personal items and pension benefits, might be exempted from the liquidation process.
After bankruptcy, you will most likely be discharged of your debts. However, your credit rating will be affected, and the bankruptcy will be visible in your credit history for several years.
Helpful resources include the Danish Courts website for official information, and the Consumer Council of Denmark for consumer-centric advice. Additionally, The Danish Debt Collection Agency provides comprehensive information about debt collection procedure.
If you need legal assistance with bankruptcy in Copenhagen, consider consulting with an experienced lawyer. Make sure to gather all relevant financial documents before your consultation. Remember, the sooner you seek help, the better you can manage your situation.
