When a company goes bankrupt

If you have a claim against a company that has gone bankrupt, you report this to the bankruptcy trustee. There is no requirement to act quickly, since all assets and liabilities in the bankruptcy are compiled in a bankruptcy inventory and all claims are processed according to the preferential rights order.

Information for those who want to be paid in bankruptcy or reconstruction at the Enforcement Authority

Claims for work performed that have not been invoiced can still be submitted and asserted in the bankruptcy. The claims will be paid to the extent that there is a dividend in the bankruptcy.

Agreements are valid until they expire or are cancelled. The bankruptcy estate can often take over the agreement. If the bankruptcy estate does not do so, you can often cancel the agreement. Sometimes the agreement can be transferred to a buyer of the bankruptcy estate, often with the agreement of the bankruptcy estate and the other party. For some agreements, such as rental agreements, there are special rules in bankruptcy.

The bankruptcy estate includes

1. Property that the debtor owned when the bankruptcy decision was made.
2. Property that the debtor receives during the bankruptcy and that can be seized.
3. Property that can be recovered to the estate. This means that certain assets that have previously been transferred or sold by the debtor can be taken back to the bankruptcy estate.

If you own property that is in the bankruptcy estate, you have the right to get it back. You need to be able to prove that you own the property. Contact the bankruptcy trustee and inform them of which property is yours. The bankruptcy trustee will investigate this and then announce his or her position on your claim. If the bankruptcy trustee approves your claim, you will agree on how and when the property can be collected. If you cannot agree, you should contact a lawyer.

The starting point is that the bankrupt company owns what the bankrupt company has purchased, even if the purchase has been made on credit/invoice. If you have agreed on a retention of title before delivery, you may, however, under certain conditions have the right to have the goods returned. You should contact the bankruptcy trustee on this matter and if you cannot agree, you can contact a lawyer.

It is not important to act immediately, as all creditors are treated according to the preferential order. The bankruptcy trustee is often very busy at the beginning and can only answer urgent questions, such as questions about continued operations.

To ensure that your claim has been recorded, you can contact the bankruptcy estate and ask for confirmation. You can also contact the bankruptcy trustee and report your claim. Sometimes the bankruptcy trustee posts information about continued operations and how to monitor your claim on their website. Check regularly for new information.

Start by contacting your accountant or accounting firm for tips and advice. If you are a member of an industry or employer organization, you may be entitled to advice. If you need legal help, you should first contact a business restructuring or bankruptcy trustee.

Find industry organisations at the Swedish Companies Registration Office (in Swedish)

It may be safe to continue to deliver to a bankrupt estate, but it is important to be cautious. The bankrupt estate can often take over the contract, but you should get written confirmation from the bankruptcy trustee that you will be paid for your deliveries. If you are unsure, contact a lawyer for advice.

Administration of a bankrupt estate at the Swedish Tax Agency (in Swedish)

To be declared bankrupt, the company or individual must be insolvent, meaning they cannot pay their debts on time. The District Court decides whether someone is insolvent.

Someone must file for bankruptcy in order for the District Court to decide on it. If a creditor files for bankruptcy on behalf of someone else, the creditor must show that the debtor owes them a debt and is insolvent.

A bankruptcy estate is a legal entity that arises in the event of bankruptcy. The bankruptcy estate consists of the assets that the bankruptcy trustee takes over when a company is declared bankrupt.

A bankruptcy trustee is a person appointed by the district court to manage the assets of a company when it goes bankrupt. The bankruptcy trustee takes control of the bankruptcy estate, which includes all assets and debts, and ensures that they are distributed fairly among the creditors. The bankruptcy trustee is responsible for selling assets and paying off debts as far as possible. The bankruptcy trustee is also responsible for personnel matters and bankruptcy investigation.

Own bankruptcy: If you file for your own bankruptcy, the district court usually decides on the same day.

Creditor's application: If a creditor files for someone else's bankruptcy, the district court will call a hearing within two weeks. If the company or person admits bankruptcy before the hearing, the district court can decide immediately.

It is difficult to know how long the entire process will take before the bankruptcy can be closed. This depends on factors such as whether there are assets in the bankruptcy estate, the number of investigation questions, whether legal proceedings need to be pursued, etc. Smaller bankruptcies usually last 6-18 months. Larger bankruptcies normally last 1-4 years but can last even longer.

If a company that has employees goes bankrupt, the bankruptcy trustee can decide on a state wage guarantee. This means that the state, through the County Administrative Board, pays the employees' wages that the company owes. The Swedish Tax Agency will pay out the wage guarantee for bankruptcies decided on or after February 1, 2025. The compensation is normally limited to a maximum of four price base amounts (235,200 SEK in 2025). If you are an employee of a company that goes bankrupt, you should contact the bankruptcy trustee and tell them how much wages the company owes you.

About wage guarantees at the Swedish Tax Agency

If there is money in a bankruptcy estate, it is distributed according to a priority order:

1. Special preferential right: Claims with collateral, such as real estate or mortgage.
2. General preferential right: Claims linked to accounting, salaries and fees.
3. Unprioritized claims: Taxes and accounts payable.

The money is distributed first to those with special preferential right, then to those with general preferential right, and if there is anything left, to the unprioritized claims.

The Preferential Rights Act at the Swedish Parliament (in Swedish)

Many municipalities are working to support local businesses when they are affected by downsizing and bankruptcies of larger companies. The business office often has an active dialogue with local businesses to understand the effects and for possible interventions from other actors, such as the state and the region. Contact your municipality for information on what support you can get.

Suppliers with claims on companies are encouraged to contact the bankruptcy administrator at the relevant district court for further assistance.

If you as a business owner are worried about your finances because you are not getting paid by someone who owes you money, there are also tips and advice on the Enforcement Authority's website.

Support for business owners at the Enforcement Authority