Konkursloven

Konkursloven is the Danish Bankruptcy Act, which provides the legal framework for insolvency proceedings in Denmark. It governs how a debtor’s assets are handled when the debtor is unable to meet obligations, including liquidation of the estate or orderly restructuring, and it defines the roles of the courts and the bankruptcy administrator in the process.

A bankruptcy petition can be filed by the debtor or by a creditor. If the court determines insolvency or other grounds for bankruptcy, it declares the debtor bankrupt and forms a konkursbo, the bankruptcy estate. A kurator is appointed to manage the estate, realize assets, and distribute proceeds to creditors according to statutory priorities. The act also contains rules on avoiding certain transactions made before bankruptcy to protect the estate and on the treatment and ranking of creditor claims, including employees, tax authorities, secured creditors, and ordinary creditors. The proceedings typically include creditor claims, meetings, and, where appropriate, settlements or settlements with the debtor.

The act sets out the duties and powers of the kurator, the supervision of the court, and remedies for aggrieved parties, as well as procedures for appeals and for closing the bankruptcy when assets are exhausted or a settlement is reached. It can also interact with other areas of law, such as corporate law, tax law, and employment law, particularly in cases involving business enterprises.

Historically, Konkursloven has been amended several times to reflect changes in commercial practice and legal developments, including alignment with European cross-border insolvency rules. It remains a central instrument in Denmark’s civil and commercial legal system for handling insolvency and creditor protection.