Konkursbegæring

What is a Konkursbegæring?

A Konkursbegæring is the official application to initiate bankruptcy proceedings in Denmark. This application is submitted to the competent court to determine whether a debtor is insolvent. The goal of the process is to secure the debtor’s remaining assets and distribute them among the creditors. The legal framework for the Konkursbegæring is defined in Danish insolvency law.

Such an application can be submitted either by the debtor or by a creditor. For creditors, it is often considered a last resort after all other collection attempts have failed. A Konkursbegæring carries significant weight: once proceedings are opened, the debtor loses control over their assets. From that point on, a court-appointed insolvency administrator takes over management and liquidation.

When is a Konkursbegæring appropriate?

A Konkursbegæring is not suitable for every case. It should be well justified and used with the aim of recovering claims through insolvency proceedings. It is especially useful in the following situations:

• The claim is clearly due but remains unpaid despite reminders

• There are signs of insolvency, such as the debtor being unreachable or owing multiple creditors

• Other actions like payment reminders or enforcement measures have failed

• There is a financial interest in liquidating the business or receiving a share of the bankruptcy estate

Some creditors also use the Konkursbegæring as a pressure tactic. In many cases, simply threatening bankruptcy prompts the debtor to pay.

How does a Konkursbegæring proceed?

A bankruptcy proceeding in Denmark follows a structured process. It starts with the application and ends with either the initiation of proceedings or a dismissal due to lack of assets.

The process includes the following steps:

1. 1

   Filing the application
   The creditor submits a written application to the competent court. Depending on the business location, this is either the Byret or the Maritime and Commercial Court (Sø- og Handelsretten) in Copenhagen.

2. 2

   Proof of claim
   The claim must be clearly documented, usually by submitting invoices, contracts, and reminders.

3. 3

   Court summons
   The court summons the debtor for a hearing. At this hearing, the debtor can respond to the claim or settle the debt.

4. 4

   Opening of proceedings
   If the debtor does not respond or if the court confirms insolvency, the bankruptcy proceedings are officially opened.

5. 5

   Appointment of an insolvency administrator
   The court appoints an insolvency administrator (kurator), who leads the process, informs creditors, secures the assets, and oversees liquidation.

What are the consequences of opening bankruptcy proceedings?

The opening of bankruptcy proceedings triggers a number of legal and financial consequences. The affected person or company loses control over its assets. From then on, the insolvency administrator makes all relevant decisions.

Specifically, this means:

• The company can no longer dispose of its assets

• All creditors are contacted by the insolvency administrator

• Outstanding claims must be formally filed

• Assets are appraised and sold

• Creditors receive a distribution based on the size of their claims

• The company may be dissolved at the end of the process

In some cases, proceedings are rejected due to lack of assets. In such cases, the debtor remains insolvent, but no liquidation takes place. The applicant then bears the full cost risk.

What documents does a creditor need for a Konkursbegæring?

A bankruptcy application must be well prepared to be accepted by the court. The documents should support the claim and demonstrate insolvency.

A well-prepared application includes:

• The unpaid invoice or contract

• Reminder letters or other evidence of failed collection attempts

• A brief description of the circumstances (who owes what and why)

• The claim amount and due date

• Translations, if documents are not in Danish

• A power of attorney, if the application is submitted by an attorney

What does a Konkursbegæring cost?

The costs of bankruptcy proceedings in Denmark can vary. They consist of several elements and should be calculated in advance.

Typical costs:

• Court fee: usually between 750 and 1,500 DKK

• Costs for the work of the insolvency administrator

• Possible legal or translation costs

The court fee is due when the application is submitted and must be paid by the applicant. Other costs are ideally covered by the bankruptcy estate. If no assets can be liquidated, the applicant bears the costs.

What should international creditors be aware of?

Creditors from abroad can also file a Konkursbegæring in Denmark. The same rules apply as for Danish creditors, but with a few specific considerations.

Particularly important:

• The application must be submitted in Danish

• All essential documents should be translated or explained

• It is advisable to hire a Danish lawyer or service provider

• The creditor must clearly substantiate their claim – the court does not conduct complex evidence reviews

• Communication with the insolvency administrator also takes place in Danish

A well-prepared and clearly reasoned application increases the chances of success and saves time.

Note for creditors

A Konkursbegæring is not a standard tool for debt collection. It is particularly suitable for cases with high economic importance, repeated non-payment, or suspected fraudulent delay of insolvency.

However, bankruptcy proceedings can also be useful for enforcing smaller claims when no other recovery options exist. In all cases, the economic proportionality should be carefully considered. Consulting a Danish law firm or a specialized debt collection agency is recommended.