Konkurssien

Konkurssi is a formal insolvency procedure in Finnish law used to settle the debts of a debtor who cannot meet its obligations. It applies to both individuals and legal entities. The procedure typically begins with a petition to the district court (käräjäoikeus) by either the debtor or by creditors who have a claim that cannot be paid when due. The court assesses whether there is maksukyvyttömyys (insolvency) and whether a bankruptcy declaration is warranted. If declared, the court appoints a konkursipesänhoitaja (bankruptcy administrator) who takes control of the debtor’s assets and forms the konkurssipesä, the bankruptcy estate.

The estate collects and protects assets, and, if necessary, liquidates them. Proceeds are distributed to creditors according to a statutory priority. Typically, costs of the proceedings and employee wages have priority, secured claims are satisfied from collateral, and unsecured claims share any remaining funds. During the konkurssi, the debtor loses the right to manage or dispose of assets; the estate may continue certain activities only if this is deemed necessary to maximize value and is allowed by the administrator. The process ends when assets are exhausted or verified claims have been paid in full. In many cases the debtor’s business is dissolved, and the company may be wound up.

Konkurssien use is often contrasted with yrityssaneeraus (corporate restructuring), a separate procedure intended to save a distressed business when possible. Konkurssi is pursued when rehabilitation seems unattainable or is not feasible given the circumstances. The overall aim is an orderly realization of assets and fair treatment of creditors.