DEBT RECOVERY

• It is common practice in Norway to forward the recovery of a late payment to debt collection agencies (inkasso). Such agencies administer the collection process on your behalf as the creditor. But is it really worth it? If the amount due is substantial, the answer is simple: NO. The limitation period for monetary claims passes quickly, so the recovery process should not be delayed. The sooner you begin the legal recovery process and ensure the seizure of the debtor’s assets, the easier it will be to recover the money. Seizure of assets prevents the debtor from disposing of their assets (the debtor cannot sell or transfer the assets) before settling with you. For more information, see moneyback.no.
• In the event of corporate insolvency/bankruptcy, we consider whether there are grounds to impose personal liability on members of the company board, the chief executive officer or the shareholders of the company. Their responsibilities are defined, albeit vaguely, by the Law on Limited Liability Companies (Aksjeloven). The above persons are obliged to act fairly and reasonably. These concepts are very broad and include a number of obligations, which may result in personal liability if not fulfilled. For example, if the head of the company or the board were aware of the company’s insolvency, failed to take any action and signed agreements with partners in full awareness of the fact that they would not be able to pay the bills, they may be recognized as personally liable for the damages incurred by the creditors.
• If the court recognizes that the decisions of the board or the head of the company influenced the insolvency or bankruptcy of the company or, for example, taking into account the financial situation of the company, the management of the company did not have the right to conclude new agreements and thus cause damages to its partners, the head of the company or the members of the board have to assume personal liability and compensate the damages caused to the creditors at their own expense.