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Bankruptcy of a trading or limited partnership

Bankruptcy of a trading or limited partnership

If a company cannot pay its debts on time, it can lead to bankruptcy. A receiver then takes care of the business's assets and uses them to pay off the business's debts.

Apply for bankruptcy at the District Court

Anyone representing a trading or limited partnership may apply to the District Court for the company to be declared bankrupt. Apply to the District Court. It rules on bankruptcy and appoints a receiver. During the bankruptcy proceedings, the receiver is responsible for managing the company's assets and liabilities. It is also up to the receiver to decide whether to continue the activity or to sell the business's assets outright.

Contact the District Court if you have questions about fees, waiting times or how to appeal.

Accounting during bankruptcy

If you represent a trading or limited partnership, you must keep accounts until the District Court has ruled on bankruptcy. The receiver keeps accounts for everything that happens after that.

Accounting during bankruptcy of a trading partnership

The Companies Registration Office and the Tax Agency deregister the company

Once the District Court has decided that the business has gone bankrupt, it sends a notification to the Companies Registration Office and the Swedish Tax Agency. The Swedish Tax Agency will then deregister the company from F tax, VAT and as an employer.

You are responsible for the company's debts

If your trading or limited partnership goes bankrupt, all of those who represent the company become personally liable for its debts, even though the company itself has been dissolved. You share that responsibility equally among you.

The business may continue to operate

The receiver may decide to continue to operate the activity. The bankruptcy estate will then receive a special company registration number and will have to pay the business's taxes. The bankruptcy estate also becomes the employer.

When the bankruptcy ends

The receiver reports his work to the District Court, which concludes the bankruptcy.

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