Failing to pay your business debt

If you fail to pay your business debt, the Debt Collection Agency may send you a reminder. This will include a payment ID, which you can use to pay off your debt in full or partially through your bank or online banking. You must pay the amount no later than on the date stated in the reminder. You will be charged a fee of DKK 140 if we send you a reminder.

If you fail to pay your debt, the Debt Collection Agency may levy execution (i.e. seize your goods) on assets such as your house, machinery, any outstanding amounts, etc. This means that we are entitled to sell your property by court order and use the money to bring down your debt. If we send you a notice of levy, you will be charged a fee of DKK 450.  

The basic court fee for a notice of levy is DKK 300. If you owe more than DKK 3,000, you will be charged an additional 0.5% on the remaining amount. So if you have debt of DKK 150,000, as an example, your court fee would be DKK 1,035. 

Levy of execution may take place at the bailiff's office, your business address or your own address. You will be charged an additional fee of DKK 400 if it takes place outside the bailiff's office.

If you do not show up for a levy of execution taking place at your address without a legally valid excuse, the bailiff may gain access by means of a locksmith and levy the execution there and then. Any costs related to paying a locksmith will be added to your debt.

If the bailiff thinks it is necessary that you are present for the levy of execution, and you fail to show up after one or several notices, the bailiff may request that the police assists in detaining you and bringing you before the bailiff. 

Be aware that interest will be added to your debt. Read more on the Interest page.

If your business owes more than DKK 50,000, and you owe VAT and A-tax as an example, we may require that you provide security for your debt, for instance by means of a bank guarantee. If you fail to provide security, we may deregister your business. This means that you would lose the right to run a business.

Read more in Danish on debt requiring a business to provide security in our legal guide at skat.dk.

If your business debt is more than DKK 100,000, we may have your local authority or the Danish Business Authority (Erhvervsstyrelsen) revoke your licence or authorisation, if you are a taxi driver or electrician, for example.

If you or your business are owed money by the public authorities, such as a tax or VAT refund, you will not always receive that money.

The Debt Collection Agency may offset the amount owing to you and use it to pay off your debt

If we fail to collect your debt, we may present you with a bankruptcy petition. When you receive a notice of bankruptcy, you will normally have five to ten days to pay your debt. If you fail to do so, we will submit a bankruptcy petition to the probate court against you.

Read more about bankruptcy in our legal guide at skat.dk (in Danish).