If you are insolvent, you cannot pay your bills as agreed. The person or company you owe money can ask the courts to take action.
If you cannot pay the money you owe on time, you may be declared insolvent. In some cases, companies can be restructured to avoid being wound up. In all cases, the courts’ objective is to secure as well as possible the money owed to others.
The courts may also close a company if it does not comply with the legal requirements that apply to companies.
If a company cannot pay its bills when they fall due, it may be wound up. Read about what happens when a winding-up petition is issued against a company.
Read about corporate insolvency
In some cases, a restructuring agreement with the creditors can save a troubled company.
Read about company restructuring
A/S and ApS must comply with a number of rules. Otherwise, the Danish Business Authority may ask the courts for compulsory dissolution of a company.
Read about compulsory dissolution
If you as an individual cannot pay your bills in time, you may be declared personally bankrupt. Everything of value will be sold and the money distributed.
Read about personal bankruptcy
Here you can read about disqualification and about what happens if a disqualification order is made against you.
Read about disqualification