Bankruptcy petition (konkursbegæring)
Also known as file for bankruptcy, petition for bankruptcy, begære konkurs, indgive konkursbegæring
A bankruptcy petition is the creditor's request to the bankruptcy court (skifteretten) to declare the debtor bankrupt.
In practice
A creditor may petition for its debtor’s bankruptcy if the debtor is insolvent — that is, unable to pay as the debts fall due — and the situation is not merely temporary.
But think one step further before you do. Bankruptcy closes the business down and puts you in the queue with everybody else. If you are an unsecured creditor, the outcome is often nothing at all.
The petition is therefore rarely the best route to the money. It is a decision to stop the debtor — not a decision to get paid.
Where it commonly goes wrong
- Bankruptcy is petitioned in anger. It feels right, and it usually delivers nothing.
- Personal liability or a guarantee is overlooked — both survive the company’s bankruptcy.