Cost
Insurance fee for bankruptcy costs must be submitted if it is clear that assets do not cover the bancruptcy exchange costs.
Applying to the Debtors Ombudsman
If you have been unsuccessfully seeking solutions to financial problems, you can, under certain conditions, receive
The aim is to enable a person who does not have assets and has no ability to pay, to file for bankruptcy.
Filing for bankruptcy with the District Court
The bankruptcy claim must be written.
The claim should be submitted to the district court where you have your legal domicile.
The claim and accompanying documents must be submitted in 2 copies. At Reykjavík District Court, 1 copy is sufficient.
Bancrupcty claim
Whether you get help from the Debtors' Ombudsman or file for bankruptcy directly, you claim must be submitted at the District Court.
The claim must state, among other things:
that you demand that your estate be taken into liquidation and the demand is based on Article 64. Act no. 21/1991 (in Icelandic)
your full name and national identification number
your legal domicile and place of residence, if it is different from your legal domicile
business information, if so:
A brief description of how the business is run
Where the business takes place
Whether it is a company with a separate name and identification number
clear description of the facts of the case and your arguments: how your finances have reached a point where you believe it is right to claim bankruptcy on your estate
detailed information about your assets and liabilities. It must be stated how much of the debt is overdue or in arrears
monthly income and expenses and how much is left each month to pay off debts
A claim for bankruptcy must be accompanied by documents that demonstrate that you cannot meet your creditors when the claims fall due.
The claim must be supported with documents :
the last tax return together with the withholding statement or pay slips for the months that have not been stated on the return
payment slips
Copy of the District commissioners record book stating that an unsuccessful enforcement action has been carried out on the debtor if applicable
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