Bankruptcy Procedure in Norway
Bankruptcy Procedure in NorwayUpdated on Monday 08th May 2017
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Through the bankruptcy procedure in Norway, the assets of insolvent companies must be distributed to creditors such as banks or other natural or legal persons. The Norwegian legislation allows the debtor the possibility to make arrangements with the persons who have a claim against him. The the bankruptcy procedure in Norway aims at settling the impossibility of payment of a company and our Norwegian law firm can assist you along the process.
Overview of the Norwegian legislation concerning bankruptcy procedure
The main regulations concerning the bankruptcy procedure are contained in the Norwegian Bankruptcy Act from 1984 where the rights and obligations of the debtors and creditors are specified in detail. More aspects are treated in the Norwegian Recovery Act which gives the guidelines for settling the bankruptcy in Norway.
I you have a business in Norway and you have been declared insolvent, you can initiate a bankruptcy procedure by yourself although this step can be performed as well by the creditor. The process may start when the board of the insolvent company declares its bankruptcy, fills the specific petition and submits it with the court. More aspects concerning the Norwegian legislation can be provided by our Norwegian lawyers who can help you identify the regulations which apply to your particular situation.
Bankruptcy proceedings in Norway
According to the Norwegian legislation, the bankruptcy procedure can be initiated only by court decision, in continuation of a hearing. If it is the case, the court appoints a trustee in order to manage the estate. You can rely on one of our attorneys in Norway who can explain to you the procedure that a trustee must follow and to inform you on your rights in this situation.
One of the first steps which a trustee is going to perform is the identification of the assets contained in the debtor’s estate, regardless whether it is to be found in Norway or abroad. The trustee has the obligation to guarantee the safekeeping of the estate and if possible to maintain the increase of the debtor’s assets so that the value obtained from its selling to cover as much as possible of the remaining debt.
If you think your company might be close to insolvency you can contact our Norwegian lawyers for legal advice. In some situations, corporate rehabilitation proceedings may function in order to help you prevent a bankruptcy process.