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International Law

: Swedish Law Blog

Swedish Bankruptcy Law ? Preferential claims (claims with ?förmånsrätt?)

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Creditors who have a security with a special preferential claim are entitled to receive payment out of the assets of the bankruptcy estate so secured before other creditors. This may be the case, for example, where a certain asset has been pledged in security.

If a creditor has obtained an attachment by the Swedish Enforcement Authority (?Kronofogdemyndigheten?) of an asset, he has also a special preferential claim in such an asset.

Creditors who have a security with a general preferential claim are entitled to receive payment out of all the assets of the bankruptcy estate not covered by a special preferential claim before both creditors with lower preferential claims and creditors with no preferential claims. Non-preferential claims are treated equally in the distribution of the assets remaining after costs and preferential claims.

Full post as published by Swedish Law Blog on December 01, 2008 (boomark / email).

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