Konkurskarantæne — bankruptcy disqualification — is one of the most serious civil sanctions that can be imposed on a business manager or director in Denmark. If disqualified, you lose the right to found or participate in the management of limited liability companies for up to three, or in serious cases five, years. The case is brought by the bankruptcy trustee (kurator) and adjudicated by the probate court (skifteretten). Globe Advokater provides specialist defence advice in English.
STEP 1
Urgent Assessment of the Summons
If you receive a summons for a disqualification order (bankruptcy restriction) from the trustee, the deadline for submitting a statement of defense is typically short. We immediately review the summons and the underlying case to assess whether the conditions under Section 157 of the Danish Bankruptcy Act are met.
STEP 2
Defense Strategy and Preparation
We review the material on which the trustee bases the case—financial statements, tax affairs, bookkeeping, and correspondence—and identify the points where the basis can be contested. We draft the statement of defense and gather counter-documentation.
Step 3
Representation in the Bankruptcy Court
We represent you during the proceedings in the bankruptcy court, including during the oral hearing. If there is a basis for a settlement, we assist with settlement negotiations and assess whether the court’s approval should be accepted.
Rates for Assistance in Disqualification Cases
Initial Assessment and Statement of Defense
From DKK 15,000
- Review of the summons and the trustee’s case material
- Legal assessment of whether the Section 157 conditions are met
- Drafting and submission of the statement of defense with objections
- Advisory services regarding settlement options and litigation risks
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Full Representation in the Bankruptcy Court
Hourly rate from DKK 3,500 incl. VAT
- Everything included in the initial phase, plus:
- Preparation: pleadings, documentation, and witnesses
- Representation during the oral hearing
- Settlement negotiations with the trustee
- Legal advice regarding appealing the decision to the High Court
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Assistance During the Disqualification Period (Compliance Advice)
From DKK 5,000
- Advice on which business activities are permitted during the disqualification period
- Review of specific transactions to avoid violations
- Advice on the possibility of lifting the disqualification order
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All prices are indicative. The hourly rate is agreed upon individually. Legal aid (free legal proceedings) may be applied for in certain cases pursuant to Sections 325-328 of the Danish Administration of Justice Act. Legal expenses insurance may cover parts of the costs.
Key areas of Danish bankruptcy disqualification law
The legal basis: Bankruptcy Act chapter 20
Bankruptcy disqualification is governed by chapter 20 of the Danish Bankruptcy Act (konkursloven, LBK nr 1162 of 9 November 2024), sections 157-164a. The 2024 revision clarified and expanded the grounds for disqualification, codified case law and introduced new procedural rules.
When can disqualification be imposed?
Three conditions must all be met under section 157:
- Participation in management: You participated in the management of the bankrupt company within the one-year period before the filing date (fristdagen). Both registered and de facto managers are covered.
- Grossly irresponsible business conduct: You engaged in conduct that section 157(2) lists as grossly irresponsible, or other conduct of comparable gravity, including: material failure to comply with tax obligations; material failure to comply with accounting and bookkeeping obligations; unjustified reduction of the company’s assets to the detriment of creditors; participation in a nominee director arrangement; or trading after the point of hopeless insolvency.
- Proportionality: The court must assess whether it is reasonable in light of all circumstances to impose disqualification — even where the other conditions are met.
What disqualification means in practice
A disqualification order prohibits you from:
- Forming new limited liability companies (aktieselskaber A/S and anpartsselskaber ApS).
- Participating in the management of any existing limited liability company as director, board member, authorised signatory or proxy holder.
Disqualification does not prevent you from working as an employee, owning shares, or operating a sole trader business (subject to the aggravated provisions in section 159).
Duration of disqualification
The standard period is three years. Where conduct is characterised as ‘particularly grossly irresponsible’, the period can be up to five years. The maximum cumulative disqualification period is ten years. Shorter periods can be agreed in settlement.
The defence process
When the trustee files a claim (stævning) with the probate court, you have a deadline to file a defence (svarskrift). Globe Advokater reviews the trustee’s grounds, identifies weaknesses in the case and prepares the most effective defence strategy. Settlement negotiations with the trustee are common and can result in a shorter disqualification period. If the court’s decision is unfavourable, it can be appealed (kæret) to the High Court.
Consequences of breaching disqualification
Breaching a disqualification order is a criminal offence under section 131 of the Danish Criminal Code, punishable by a fine or imprisonment of up to six months. The breach can also trigger a new, potentially extended disqualification and personal unlimited liability for the new company’s debts if it subsequently goes bankrupt.
Why choose Globe Advokater?
- Specialist knowledge of Danish insolvency law and konkurskarantæne proceedings.
- English-language advice throughout the process.
- Immediate response when you receive a trustee’s claim.
- Experience in settlement negotiations and High Court appeals.
What is the difference between konkurskarantæne and criminal prosecution?
Disqualification (konkurskarantæne) is a civil sanction imposed in a civil court case. Criminal prosecution under the Bankruptcy Act or the Criminal Code is a separate process. Both can run in parallel — disqualification does not prevent criminal prosecution, and vice versa.
Can I continue operating my existing business under disqualification?
Operating as a sole trader (personal unlimited liability) is generally permitted. Working as an employee is also permitted. However, if you are subject to the aggravated prohibition under section 159(2) — triggered when a new disqualification is imposed while a previous one is still running — even sole trader activity may be restricted. Globe Advokater can advise on your specific situation.
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