Bankruptcy estate (konkursbo)
A bankruptcy estate (konkursbo) is the total assets belonging to a company or person once the bankruptcy court has issued a bankruptcy order. The estate is administered by a trustee (kurator), who realises the assets and distributes the proceeds to creditors in the statutory order of priority.
The figures behind the term
Source: companydata.dk, CVR and annual reports, updated 16 October 2026
From the order onwards the debtor loses control of its assets and the trustee takes over. The trustee reviews assets and debts, sells the business or its parts, examines management's conduct and may recommend a bankruptcy quarantine. The estate is named 'X ApS under konkurs' (in bankruptcy).
Creditors' claims and the order of priority
Creditors file their claims with the trustee before the deadline published in Statstidende. Claims are paid in the statutory order: first the estate's own costs, then costs of any restructuring attempt, then wage claims, then certain duties and finally the unsecured claims most suppliers hold. Unsecured creditors often recover only a small part of what they are owed, and in many estates nothing.
How is a bankruptcy estate closed?
If there are funds, the estate is closed with final accounts and a distribution to creditors. If nothing remains beyond the estate's costs, it is closed without distribution. Once the estate is closed, the company is dissolved and removed from CVR. Every step, the order, the filing deadline, any creditors' meeting and the closing, is published in Statstidende.
Frequently asked questions
What is a bankruptcy estate?
The assets taken over by the bankruptcy court once the bankruptcy order is issued. A trustee administers the estate and distributes the funds to creditors.
Who controls the bankruptcy estate?
The trustee, under the supervision of the bankruptcy court. The previous management loses control of the company's assets from the moment the order is issued.
In what order are creditors paid?
By the ranking in the Danish Bankruptcy Act: first the costs of administering the estate, then wage claims among others, then ordinary claims and finally subordinated claims.
Related terms
Bankruptcy (konkurs)
Konkurs (bankruptcy) is the judicial winding-up of an insolvent company: the bankruptcy court issues a decree, a trustee takes over the estate, assets are sold, and proceeds are distributed to creditors by statutory priority.
Bankruptcy quarantine (konkurskarantæne)
Konkurskarantæne (bankruptcy quarantine) is a ban the bankruptcy court can impose on a person who conducted grossly irresponsible business in a bankrupt company. The ban means the person, typically for three years, may not participate in the management of limited-liability companies.
Voluntary liquidation (likvidation)
Likvidation (voluntary liquidation) is the winding-up of a solvent company: the general meeting decides to dissolve, a liquidator winds down operations, all creditors are paid in full, and the remaining assets are distributed to the owners.
Restructuring (rekonstruktion)
Rekonstruktion (restructuring) is a court-supervised process to save an insolvent but viable company from bankruptcy, typically through a compulsory composition (writing down debt), a business transfer, or both.