Skifteretten (the bankruptcy and probate court)
Also known as bankruptcy court, probate court, insolvency court, skifteret
Skifteretten is the division of the district court that deals with bankruptcies, restructurings, debt relief cases and deceased estates.
In practice
Where the bailiff’s court (fogedretten) enforces one claim for one creditor, skifteretten divides one estate between all the creditors. That is the whole difference: the bailiff’s court is individual enforcement, the bankruptcy court is collective winding-up.
It is also why a bankruptcy petition is such a serious step. It closes the debtor’s business down and puts every creditor in the same boat — you included.
Where it commonly goes wrong
- Using the bankruptcy petition as a means of pressure. It can work — but if the company actually does go bankrupt, you typically get nothing, where you might otherwise have had an instalment plan.