Best Bankruptcy Lawyers in Kalundborg

About Bankruptcy Law in Kalundborg, Denmark

Bankruptcy in Denmark is called konkurs. It is a court-managed process used when a person or a company is insolvent, meaning they are unable to pay debts as they fall due and the situation is not temporary. In Kalundborg, bankruptcy cases are handled by the local District Court sitting as the Probate and Bankruptcy Court, called Skifteretten. When the court opens bankruptcy, a trustee - usually a lawyer - is appointed to take control of the assets, review creditor claims, and distribute any available value according to the statutory order of priority.

Bankruptcy is different from two other Danish tools. Reconstruction, called rekonstruktion, aims to rescue a viable business through a court-supervised plan that may include a composition with creditors or a transfer of the business. Personal debt relief, called gældssanering, is a separate court process for individuals that can reduce or remit unsecured debts after a payment plan. Many individuals who enter bankruptcy later apply for debt relief through the court.

Kalundborg residents and businesses follow national Danish rules. Local practice matters for practical steps, deadlines, and hearings, which are set and managed by the local court and the appointed trustee.

Why You May Need a Lawyer

A lawyer can help you understand your options early, prepare filings correctly, and protect your rights. Common situations where legal help is useful include facing creditor pressure or bailiff enforcement, negotiating with banks about mortgages or personal guarantees, deciding between bankruptcy, reconstruction, or out-of-court settlements, and applying for personal debt relief.

Business owners and directors often need advice on duties when a company is in financial distress, including when to stop trading, how to handle employees and VAT, and how to avoid wrongful preferences. A lawyer can guide you through contact with the court and the trustee, represent you at meetings, draft settlement proposals, and manage disputes about claims, security interests, or avoidance of transactions.

If you are an employee of an insolvent business, a lawyer can help you file with the Employees Guarantee Fund and preserve your rights. Cross-border questions also arise when creditors or assets are outside Denmark, where specialized advice is important.

Local Laws Overview

Core legal framework. Danish bankruptcy and reconstruction are governed by the Bankruptcy Act, called Konkursloven, and related procedural rules applied by the District Court as Skifteretten. Company director duties and potential liability are found in the Companies Act and general tort principles. Employees are protected through statutory priority and the Employees Guarantee Fund.

Insolvency test. The court looks at whether the debtor cannot pay debts as they fall due and that this is not a short-term liquidity issue. Evidence includes overdue taxes, unpaid employee wages, bounced payments, and unsuccessful enforcement actions.

Starting a case. A debtor or a creditor can file a petition with Skifteretten that serves Kalundborg. The court may require a deposit to cover initial estate costs. If insolvency is proven, the court issues a bankruptcy order and appoints a trustee. For businesses, reconstruction may be sought instead if there is a realistic rescue plan.

Immediate effects. Management loses control of the assets, which become a separate estate managed by the trustee. Most enforcement is stayed, and new payments to unsecured creditors are generally prohibited. Contracts and leases are reviewed by the trustee, who may choose to continue or terminate them within legal limits.

Claims and distribution. Creditors file proofs of claim by a deadline announced by the trustee and in the Official Gazette, called Statstidende. Secured creditors are paid from their collateral. Costs of the estate are paid first, followed by preferential claims such as certain employee and tax claims, then ordinary unsecured claims, and finally subordinated claims. If assets are insufficient, unsecured creditors may receive only a partial dividend or nothing.

Avoidance of transactions. Certain payments, security interests, and transfers made before bankruptcy can be set aside if they unfairly favored one creditor or harmed the estate. Look-back periods vary depending on the type of transaction and relationship between the parties, and can be longer for closely related parties or intentional prejudice.

Employees. Wages and holiday pay have statutory protection. If the estate cannot pay, employees can apply to the Employees Guarantee Fund for covered amounts, subject to caps and conditions.

Individuals and debt relief. Bankruptcy does not automatically discharge personal debts. Individuals who are hopelessly indebted can apply for court-approved debt relief with a fixed payment plan. The court assesses good faith, income, reasonable living expenses, and the nature of the debts. Certain debts may be excluded by law.

Director conduct and quarantine. If a company fails, directors can face claims for losses caused by grossly negligent conduct and may receive a bankruptcy quarantine that restricts them from managing companies for a period set by the court. Early advice and proper documentation of decisions are important to reduce risks.

Frequently Asked Questions

What is the difference between bankruptcy, reconstruction, and personal debt relief?

Bankruptcy is a winding-up process where a trustee liquidates assets and distributes proceeds to creditors. Reconstruction is a court-supervised rescue to keep a viable business going, often through a composition or business transfer. Personal debt relief is a separate court process for individuals to reduce or remit unsecured debts after a payment plan. Individuals can apply for debt relief during or outside bankruptcy.

Which court handles cases in Kalundborg?

Bankruptcy, reconstruction, and debt relief petitions are filed with the local District Court acting as Skifteretten for the Kalundborg area. The court sets hearings, appoints a trustee, and oversees the process.

How does the court decide if I am insolvent?

The court looks at whether you cannot pay debts as they fall due and that this is not temporary. Evidence may include long-overdue invoices, unpaid taxes, repeated failures to meet payment plans, and unsuccessful bailiff enforcement. Solvency on paper does not prevent a finding of insolvency if assets are illiquid or already pledged.

What happens immediately after a bankruptcy order?

A trustee takes control of assets and books. Most individual enforcement actions are stayed. Payments to unsecured creditors stop. The trustee secures assets, notifies known creditors, sets a claims deadline, and decides whether to continue or end ongoing contracts and leases. Company management loses disposal rights over assets.

Will I lose my home or car?

It depends on equity, security interests, and necessity. Secured creditors such as mortgage lenders have strong rights. For individuals, essential household effects and tools needed for work are protected to a limited extent. The trustee will assess whether there is realizable value for the estate. If you seek personal debt relief, a budget for reasonable living costs is part of the plan.

How are secured creditors treated?

Secured creditors are paid from their collateral according to their security. If collateral value is less than the debt, the remaining balance becomes an unsecured claim. Security created shortly before bankruptcy can be challenged and set aside in some cases.

What protection do employees have if my business goes bankrupt?

Employee wage and holiday claims have statutory priority. If the estate cannot cover wages, employees can apply to the Employees Guarantee Fund for covered amounts. The trustee provides documentation and instructions to employees on how to apply and observe deadlines.

How long does a bankruptcy case take?

Simple personal cases can close within months. Business estates with significant assets, disputes, or avoidance claims can take a year or more. The trustee issues periodic reports to the court and creditors on progress and expected timelines.

What does it cost to file for bankruptcy?

There are court fees, and the court may require a deposit to cover initial estate costs. The amount depends on the case type and local practice. If the estate has assets, costs are paid from the estate. You should ask the court or a lawyer about the current deposit level and any available exemptions.

What are the risks for directors and personal guarantors?

Directors can face claims if they continued trading while insolvent in a way that harmed creditors, made unlawful preferences, or failed to keep proper accounts. The court can also impose a bankruptcy quarantine that limits management roles for a period. Personal guarantors remain liable according to their guarantees, even if the company enters bankruptcy, unless a settlement is negotiated.

Additional Resources

Skifteretten at the local District Court serving Kalundborg - for filing petitions, guidance on forms, hearing dates, and contact with the trustee.

Domstolene - the national Courts of Denmark information service with practical guidance on bankruptcy, reconstruction, and personal debt relief procedures.

Statstidende - the Official Gazette where bankruptcy orders, claims deadlines, and trustee notices are published.

Erhvervsstyrelsen - the Danish Business Authority for company registrations, financial reporting obligations, and guidance for distressed businesses.

Lønmodtagernes Garantifond - the Employees Guarantee Fund that handles wage claims when employers are insolvent.

Skattestyrelsen and Gældsstyrelsen - tax and public debt authorities for payment plans, offsets, and claim information in insolvency.

Advokatsamfundet and local lawyer referral services - to find a lawyer with insolvency and reconstruction experience in Region Sjælland.

Free or low-cost debt counseling services, called retshjælp or gældsrådgivning, including local legal aid offices in Region Sjælland.

Next Steps

Take stock of your situation. List all creditors, amounts, due dates, and any security interests. Gather contracts, bank statements, tax filings, and recent correspondence from creditors and the bailiff. If you run a business, ensure accounts and VAT records are up to date as far as possible.

Speak to a qualified lawyer early. Ask about the pros and cons of bankruptcy, reconstruction, and out-of-court settlements. If you are an individual, ask whether you qualify for debt relief and what a realistic payment plan looks like. If you are a director, ask about duties when there is capital loss and how to reduce liability risks.

Contact the local Skifteretten for practical filing information. Confirm required forms, fees, and any deposit. If employees are involved, coordinate with the trustee about wage claims and notifications to the Employees Guarantee Fund.

Stabilize day-to-day matters. Avoid favoring specific creditors. Do not dispose of assets or grant new security without advice. Keep clear records of decisions. If enforcement actions are ongoing, inform your lawyer so they can assess whether a filing would stay those actions.

Use support resources. Reach out to legal aid or debt counseling if you need budgeting help or initial guidance. For businesses, speak with your accountant and consider a turnaround assessment to see if reconstruction is realistic.

Act promptly. Early, informed steps usually preserve more options and value, reduce stress, and help you comply with your legal duties in Kalundborg and throughout Denmark.