Bankruptcy
See what you can do if your company has received a bankruptcy notice or has gone bankrupt.
The company has received a bankruptcy notice
If your company has received a bankruptcy notice, it’s important that you do everything you can to avoid or reduce the consequences.
If the company has received a bankruptcy notice, you must make sure to pay the claim the company owes if you can. You can find the payment information in the bankruptcy notice you’ve received, or by logging in to Altinn.
If the company has not paid the claim by the deadline stated in the bankruptcy notice, the Norwegian Tax Administration will consider asking the district court to open bankruptcy proceedings.
If the company cannot pay immediately, you may apply for a payment agreement.
If you have information that may affect whether the company may go bankrupt, for example, that the company has assets that the Tax Administration is unaware of, you should inform us about this.
It’s important that the company treats all its creditors equally. For example, if you make payments to someone, but let others wait, such payments can be reversed during bankruptcy proceedings.
You risk being held personally liable if the other creditors lose money because of this.
To get an overview of your finances, you can ask your company's accountant or auditor for help.
A lawyer can advise you on your rights and obligations.
Personal liability for some types of claims
However, for some types of claims, you as a general manager, board member, or other responsible person may be held personally liable. This applies even if the company’s a private limited liability company (AS).
Examples of claims for which you may be held personally liable include accounting fees, guarantee liabilities, or claims involving joint and several liability.
The Tax Administration may also file a claim for compensation if we believe our claim is not covered because the management has acted negligently.
The company is undergoing bankruptcy proceedings
During bankruptcy proceedings, the company loses the right to decide over its assets, and the district court appoints an administrator who’s responsible for the administration of the estate. Contact the administrator for information about your rights and obligations.
The Tax Administration will send an overview of our claims to the administrator. If there are funds in the estate, the administrator will distribute them to the creditors according to the priority and size of the claims.
If you have a sole proprietorship, you cannot apply for a payment agreement or debt settlement while you, and thus also your business, are undergoing bankruptcy proceedings.
For companies
For a company, the administrator must submit a tax return for the current taxation period and request advance tax assessment before the bankruptcy estate is dissolved.
Sole proprietorships
For a sole proprietorship, both you as the owner of the enterprise and the bankruptcy estate must submit tax returns, but for different circumstances:
- The bankruptcy estate must submit a tax return for income and capital belonging to the estate after the commencement of bankruptcy. This applies, for example, to income from the sale of assets in the estate.
- You must submit a tax return for income and wealth that is not included in the estate, and for the period before the bankruptcy proceedings begin. You must also provide information about any tax-free income that has been deducted from the estate.
If the business ceases to exist before the commencement of bankruptcy, you must notify the Tax Administration. In this case, the company will be deleted from the VAT Register.
When the bankruptcy proceedings begin:
- the company will automatically be deleted from the Value Added Tax Register from the same date, without any action required on your part. The company can submit corrections for periods prior to the bankruptcy in the last period in which the enterprise was registered in the Value Added Tax Register.
- the bankruptcy estate assumes the company's obligations and rights related to value added tax. The bankruptcy estate must be registered in the Value Added Tax Register if the company was registered or required to register at the time the bankruptcy proceedings began. The estate must pay value added tax on sales and withdrawals after the bankruptcy begins, in the same way as before the bankruptcy.
The company may be entitled to a deduction for input value added tax in the event of a bankruptcy.
More information in the value added tax handbook (in Norwegian only).
When the bankruptcy proceedings are finished
The bankruptcy proceedings may finish without all claims being paid. What happens to the rest of the debt depends on the type of business you had.
If the company that has gone bankrupt has limited personal liability, such as a private limited liability company (AS), the rest of the debt is usually deleted.
Personal liability for some types of claims
However, for some types of claims, you as a general manager, board member, or other responsible person may be held personally liable. This applies even if the company’s a private limited liability company (AS).
Examples of claims for which you may be held personally liable include accounting fees, guarantee liabilities, or claims involving joint and several liability.
The Tax Administration may also file a claim for compensation if we believe our claim is not covered because the management has acted negligently.
You’re responsible for the debt that remains after the bankruptcy proceedings are finished. This means you must still pay what you owe.
Apply for a payment agreement or debt settlement
You can apply to the Tax Administration for a payment agreement or to the enforcement officer for debt settlement under the public debt settlement scheme (politiet.no).