New Allocation of Responsibilities in Bankruptcy and Restructuring Proceedings
On 1 July 2026, a new bankruptcy procedure enters into force. The reform aims to make bankruptcy proceedings (Sw. konkurser) more efficient and modern by redistributing responsibilities between the district courts, the bankruptcy trustee, and the Swedish Enforcement Authority (Sw. Kronofogdemyndigheten) in several key respects. At the same time, jurisdiction to handle bankruptcy proceedings is concentrated to twelve district courts, while jurisdiction to handle restructuring proceedings (Sw. företagsrekonstruktioner) is concentrated to four district courts.
A New Allocation of Responsibilities in Bankruptcy Proceedings
The core of the reform is to streamline the role of the district courts. The district courts will no longer have an administrative coordinating function in bankruptcy proceedings but rather intervene when rulings are required. This means that the main responsibility for the ongoing administration is shifted from the district courts to the bankruptcy trustee and the Swedish Enforcement Authority.
At the same time, the district courts retain matters that should be subject to judicial review. These include, inter alia, decisions on bankruptcy, the appointment of a bankruptcy trustee, matters concerning the debtor’s oath and coercive measures, the dismissal of a bankruptcy trustee, disputes in proof of debt procedures, disputed distribution proposals, and clawback disputes.
The trustee shall, inter alia, decide whether a proof of debt procedure is to be carried out, receive proofs of debt and objections, notify relevant parties, and seek settlements in proof of debt procedures.
The Swedish Enforcement Authority is, in turn, assigned an enhanced role as a decision-making authority in bankruptcy proceedings. The authority shall, inter alia, be responsible for decisions regarding the discontinuation of bankruptcy proceedings, compensation to the bankruptcy trustee, the determination of uncontested distributions and advances on the bankruptcy trustee's remuneration. Several official documents previously submitted to the district courts shall henceforth be submitted to the Swedish Enforcement Authority.
Concentration of Competent Courts in Bankruptcy Proceedings
Another key element of the reform is the concentration of jurisdiction in order to ensure quality, efficiency, and specialised competence.
Under the current rules, all district courts are competent to handle bankruptcy proceedings. Following the entry into force of the reform, bankruptcy proceedings shall instead be handled by twelve district courts:
Umeå, Sundsvall, Uppsala, Attunda, Stockholm, Södertörn, Örebro, Jönköping, Gothenburg, Borås, Helsingborg, and Malmö District Courts.
Concentration of Competent Courts in Restructuring Proceedings
Under the current rules, all district courts are authorised to handle restructuring proceedings. However, after the reform enters into force, restructuring proceedings shall be handled by only four district courts:
Sundsvall, Stockholm, Gothenburg, and Malmö District Courts.
The concentration entails that restructuring cases are gathered at fewer district courts that can be expected to develop greater experience, a higher degree of specialisation, and enhanced competence. This is particularly important in restructuring proceedings as these matters often involve urgent and business-critical issues where the court’s ability to address procedural issues swiftly may have an impact on the restructuring.
At the same time, the reform may contribute to a more uniform application of the law in the field of restructuring, which is important given that such cases often require balancing between legal, financial, and commercial interests.
Concluding Remarks
For both bankruptcy proceedings and restructuring proceedings, the concentration to fewer courts means that case handling may become more specialised and uniform. For restructuring proceedings, this is particularly significant as the area requires a high degree of specialisation.
In conclusion, the new reform represents a step towards more efficient proceedings and the concentration of insolvency matters to fewer courts should result in greater expertise and improved quality.
