When a district court opens bankruptcy (konkurs), the debtor’s assets are taken over by a bankruptcy estate (konkursbo). The estate is administered for the benefit of all creditors. This article explains the procedure and the actors for creditors, board members and debtors.
The main rules are in the Bankruptcy Act (konkursloven) and the Satisfaction of Claims Act (dekningsloven).
For the conditions for opening bankruptcy, see our article Norwegian Bankruptcy Proceedings.
The actors
The trustee (bostyrer)
When the court opens bankruptcy, it immediately appoints a trustee (bostyrer), as a rule a lawyer (Section 77 of the Bankruptcy Act (konkursloven)). The trustee takes control of the estate, secures and realises the assets, examines the claims and looks into how the business was run before the bankruptcy.
The creditors’ committee and the estate board (bostyre)
The court may appoint a creditors’ committee (kreditorutvalg) of one to three members. Together with the trustee, the committee forms the estate board (bostyre) (Section 83). On certain conditions the employees may have a representative on the committee (Section 84).
The creditors’ meeting (skiftesamling)
The creditors’ meeting (skiftesamling) is held in the district court. Meetings are held when the law requires it, when the court finds it necessary, or when the estate board or creditors representing at least one fifth of the voting claims ask for it (Section 92). Decisions are made by simple majority calculated by the amount of the claims, and the majority must represent at least one fifth of the total voting claims (Section 96).
The debtor
The debtor loses the right to dispose of the estate’s assets and cannot take on obligations on behalf of the estate (Section 100). The debtor has duties to give information and assist the trustee (Section 101). When the debtor is a company, these duties also apply to the board members and the general manager (Section 108).
The first steps
Announcement. The opening of bankruptcy is announced in the electronic announcement publication of the Brønnøysund Register Centre (Section 78). The first creditors’ meeting should be held no later than three weeks after the announcement.
Registration of assets. The assets are registered, and the debtor must be present if the court or the trustee requires it (Section 80).
What belongs to the estate. The estate comprises the assets that belong to the debtor when bankruptcy is opened and that can be seized (Section 2-2 of the Satisfaction of Claims Act (dekningsloven)). Assets that belong to others, such as a spouse, are not part of the estate. For individuals, certain personal belongings and money needed for maintenance are exempt (Sections 2-3 and 2-5).
Continued operation and realisation
The trustee or the estate board decides whether the debtor’s business is to continue. If the business is to continue, the question should be put to a creditors’ meeting for comment. Continued operation should only be decided if it is likely to avoid harm to the estate or give a better realisation of its assets. It may also continue out of consideration for the employees or special public interests, if the estate receives sufficient security that coverage for the creditors is not reduced (Section 119 of the Bankruptcy Act).
The estate’s assets are to be realised in the way that is expected to give the highest yield. Public auction should only be used if it is likely to give better prices than a private sale. Sales to the debtor or the debtor’s related parties must first be announced (Section 117).
Claims
Creditors are invited to file their claims with the trustee. The deadline is set at between three and six weeks from the announcement (Section 109). The trustee prepares a list of the filed claims with a recommendation (Section 110), and the claims are examined by the trustee or the estate board (Section 111). Disputes about claims can be brought before the court.
Order of priority
Creditors with security in specific assets (for example a mortgage or pledge) are as a rule paid from those assets. The remaining assets are distributed in this order under the Satisfaction of Claims Act:
Estate claims, including the costs of administering the estate (Section 9-2).
First-class preferential claims, mainly employees’ wages and holiday pay (Section 9-3).
Second-class preferential claims, certain tax and public claims (Section 9-4).
Ordinary unsecured claims (Section 9-6).
Subordinated claims (Section 9-7).
Creditors in each class are paid in proportion to their claims. Ordinary creditors often receive little or nothing.
Closing the estate
When the estate has been administered, the trustee prepares a final account and report, and creditors are given at least two weeks to object (Section 122). The estate is then closed and the final distribution is made (Section 128). If the assets cannot cover the costs, the administration may be suspended (Section 135).
Related reading
How we can help
Advokatfirmaet Sterk AS (org. no. 931 556 584, St. Olavs plass 3, 0165 Oslo, advokats.no) advises creditors, board members and debtors on bankruptcy, including filing claims and dealings with the estate. If you would like us to look at your situation, you can contact us. Information about our fees is available at advokats.no/priser.
This article provides general information as of 29 October 2026 and is not legal advice for your specific situation.
