Unfortunately, bankruptcies are far from rare in Denmark - and according to Statistics Denmark, over 5,614 companies were affected in 2020. This number sounds high, but it's actually 22% lower than the average for the period 2016-2019, and 34% lower than the previous year.
Many point to the government's aid packages as the lifejacket that has prevented several companies from turning the key. In addition to relief packages, initiatives such as tax and VAT deferrals have also had an impact during the difficult time for traders.
The deferred taxes are set to be repaid in 2022. Specifically, the June payment of A-tax and AM contributions will be postponed to January next year. The repayment deadline for SME A-tax loans from January 2021 will be moved from November 2021 to November next year. It is therefore expected that the number of bankruptcies will increase significantly next year.
The bankruptcies will have major consequences for the many thousands of businesses that will provide credit to the bankrupt companies - and thus face a potential financial loss.
What is bankruptcy and how do I claim my arrears?
Bankruptcy is essentially a legal status that is initiated when a company is no longer able to pay its creditors and thus meet its obligations. Both private individuals and companies can undergo bankruptcy proceedings.
This article deals exclusively with companies that go bankrupt.
To make a claim in arrears, such as an unpaid invoice, you need to submit a notification to the bankruptcy court stating what you as a company are owed by the bankrupt company. However, you must be quick to get the information regarding the bankruptcy, because even if a company has submitted a bankruptcy petition to the bankruptcy court, it does not mean that you will get your outstanding debt back. As a creditor, you typically have eight weeks to make the bankruptcy court aware of your claim.
There is a specific order that you follow when filing your claim. Before a company can recover its claim, or rather parts of its claim, a number of costs etc. must be paid to various parties first. See the order below:
Payment to the trustee
This includes costs associated with the time spent by the elected trustee handling the bankruptcy estate.
Court fees
These costs are fees collected by the Danish courts on behalf of the Danish state.
Payroll
If wages are still outstanding for the bankrupt company's former employees, this item will be prioritized third in the order of priority.
Supplier fees
This could be, for example, that the supplier's goods are subject to tax, and if this is not paid, the obligation to pay the tax will fall to the Debtor.
Other creditors
These are all creditors who have managed to file a claim with the Probate Court within eight weeks.
Detect bankrupts in time and get instant notification when your customer or supplier goes bankrupt
By credit checking your customers or suppliers in Qatchr, you automatically get a bankruptcy analysis that will reveal if there are any bankrupts on the board/owners. This information equips you to make better business decisions and prevent bad deals.
Knowing your customer/supplier is paramount - especially during times of crisis when more bankruptcies are expected to occur.
Monitor your customers
By monitoring your customers in Qatchr, you are automatically notified when the credit profile changes. You decide which parameters should trigger a notification to you, e.g. change of credit score, change of status (discontinued as bankrupt), change of ownership, etc. Based on the information, you can decide whether to change your credit policy for the customer in question or stop granting credit.
Book a meeting 