Konkursloven (the Danish Bankruptcy Act)
Also known as danish bankruptcy act, bankruptcy act, lov om konkurs
Konkursloven (the Danish Bankruptcy Act) lays down how a bankruptcy estate is administered, and in what order the creditors are paid.
In practice
The chapter of Konkursloven that matters most to a creditor is the one that sets the ranking of claims: who is covered first when there is not enough for everyone. Supplier claims are unsecured claims, and they sit at the back of the queue.
The Act also contains the avoidance rules, which can claw payments back into the estate — including payments you have received yourself.
Where it commonly goes wrong
- The ranking is only looked up once the customer has gone bankrupt. By then the decisions were made long ago.