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At Sundgaard, we have extensive experience with all aspects of insolvency, bankruptcy and financial distress. We are qualified to help you or your business manage any financial challenges.

Debt relief

A person who is in debt (insolvent) can receive debt relief, which means that, after paying a dividend on his debt for a number of years, he becomes debt free. A number of conditions are set in order to receive debt relief, and the court has a duty to guide persons seeking debt  relief. You can read more about debt relief on

A petition for debt relief must be submitted to the bankruptcy court. If the court finds that the conditions for initiating the proceedings are met, the court will appoint an administrator (an attorney chosen by the court). The administrator will assist the court in assessing and recommending whether the person meets the requirements.

If you as an individual are undergoing bankruptcy proceedings, or have given personal security for a business’ debt and the business is bankrupt, there are more relaxed rules for receiving debt relief. However, there is a time limit, as you must apply for debt relief before the bankruptcy estate is finalised.

The time frame for the proceedings (the period of payments) before you become debt-free is typically 5 years when applying for debt relief outside of bankruptcy. The period is 3 years when applying for debt relief in continuation of bankruptcy proceedings.

At Sundgaard, we offer help with debt relief proceedings. We assist in assessing whether the conditions are met, just as we assist in submitting a request to the bankruptcy court and possibly participate in court hearings.