The commencement of bankruptcy proceedings will normally not represent an obstacle to the debtor engaging in a new business activity independently of the estate. Nevertheless, the debtor may lose the right to engage in business activities while subject to bankruptcy proceedings, cf the Act concerning Commercial Activities of 6 June 1980. If the business does continue, the debtor must surrender operating assets, goods, premises, rights etc. Rights in accordance with agreement concluded prior to the commencement of bankruptcy proceedings pass to the bankruptcy estate. The losses sustained by the debtor in business activities and outside business activities occurring in the year of the bankruptcy may be deducted from the debtor's other income for the same year and from the income of a spouse and minors together with whom the debtor is assessed for tax purposes.
Guidance is available from the tax office in the home municipality of the debtor.
When bankruptcy proceedings commence, the Bankruptcy Court appoints a trustee, usually an attorney at law. The trustee takes over the management of the estate. A creditors committee comprising representatives of the creditors may be appointed at the first general meeting of creditors. The trustee and the creditors committee make up the board of trustees. As a general rule the Bankruptcy Court must also appoint an auditor to the estate.