The courts await a slew of Coronavirus bankruptcies

The country’s courts estimate that the Coronavirus outbreak will result in thousands of bankruptcies that must be dealt with.

In a letter to Parliament, the Court Administration Director Sven Marius Urke warns that a substantial increase in the number of bankruptcies can be expected in the time to come as a result of the Coronavirus. He asks for extraordinary means to handle the cases, writes Dagbladet.

– Based on figures from the financial crisis in 2008, the Court administration has estimated that 6,000 more bankruptcy cases will come to the courts as a result of the negative effects of the Coronavirus on the Norwegian economy, writes Urke and department director Jann Ola Berger in the letter.

They expect the increase in the number of cases to start coming late in the fall this year and continue into next year. They are asking for an additional allocation of NOK 181 million to handle all the new cases and to clean up the backlog of cases due to the virus outbreak.

The letter also warns that the number of labor lawsuits may increase dramatically next year.

© NTB Scanpix / #Norway Today