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Debtor’s Assets Frozen While Case is Pending in Court
In Iceland, courts have the power to impose interim attachments on debtors’ assets while a case is pending, preventing them from disposing of their assets before the court makes a decision. This measure aims to ensure that creditors can recover their outstanding debts.
When a debtor is unable to pay a debt, or claims to be unable to do so, it may be possible for the creditor to petition for bankruptcy. In such cases, the court appoints a trustee who assesses the debtor’s assets and attempts to repay existing debts from these assets.
However, most debtors will do everything in their power to avoid bankruptcy. Fortunately, simply filing a petition can often prompt the debtor to pay off the outstanding debt. This is because interim attachments can hinder business operations by preventing the use of assets.
Collection Company Offers Expert Advice
At Collection Company, we specialize in debt recovery and offer expert advice on various legal areas, including:
- Construction law
- Rental and leasing
- Buying and selling
- Labor law
- Agency agreements
- Transport
- Damages
- Wrongful acts
Our team of experts can assist clients with claims and disputes, providing reliable guidance throughout the process.
Free Advice on Debt Collection in Iceland
If you’re experiencing difficulties collecting an outstanding debt in Iceland, we offer free advice on debt collection. Simply submit your contact details, and one of our debt collection specialists will be in touch to discuss your case.
Frequently Asked Questions About Debt Collection in Iceland
We’ve compiled a list of frequently asked questions about debt collection in Iceland, covering topics such as:
- What documents are required for a debt collection claim?
- Is a lawyer needed for debt collection?
- What are the costs associated with initiating legal proceedings?
Let us know if you have any further requests!