konkurss

Konkurss is a formal insolvency procedure used in several jurisdictions, notably in Estonia, in which a debtor who cannot meet its financial obligations may be declared bankrupt. The procedure aims to maximize the value of the debtor’s estate, ensure an orderly realization of assets, and provide a framework for equitable treatment of creditors. For individuals, konkurss can also lead to a discharge from remaining liabilities after the estate is realized.

Declaration of konkurss can be initiated by the debtor or by creditors who file a petition with the competent court. If the court accepts the petition, it appoints a konkursihaldur (insolvency administrator) to manage the debtor’s estate, collect and value assets, and realize them. The administrator handles creditor claims and reports to the court, which supervises the process.

During the proceedings, the debtor’s ability to dispose of assets is restricted and claims are handled according to a statutory order of priority. Assets are liquidated, and proceeds are distributed to creditors in order of priority, after paying administrative costs and any secured or preferred claims, with the remaining funds allocated to unsecured creditors as provided by law.

The proceedings conclude when assets are exhausted or a distribution plan is completed. For individuals, the court may grant a discharge from remaining unsecured debts upon completion. For companies, the conclusion typically involves dissolution or a reorganization if possible, rather than ongoing bankruptcy.

Legal framework: In Estonia, konkurss is regulated by the Konkursiseadus (Bankruptcy Act) and overseen by county courts, with the konkursihaldur responsible for administration. Similar procedures exist in other jurisdictions under different names.