Konkurssiprosessi

Konkurssiprosessi, or bankruptcy proceedings, is a legal procedure initiated when an individual or a company is unable to meet their financial obligations. The primary goal of this process is to distribute the debtor's assets among their creditors in a fair and orderly manner.

In Finland, the process is governed by the Bankruptcy Act. It begins with a petition filed by either the debtor or one or more creditors to the District Court. If the court accepts the petition, it declares the debtor bankrupt and appoints a bankruptcy trustee. The trustee's role is to take control of all the debtor's assets, which may include property, money, and other valuables. These assets are then liquidated, meaning they are sold to generate cash.

Creditors are then invited to submit their claims to the bankruptcy trustee. The trustee reviews these claims and determines their validity. Once all valid claims are identified, the trustee distributes the proceeds from the liquidation of assets among the creditors according to a legally defined order of priority. Secured creditors, such as mortgage holders, are typically paid first. Unsecured creditors receive a share of the remaining assets, often only a fraction of what they are owed.

The bankruptcy process can be complex and time-consuming. It aims to provide a structured way to resolve insolvency and offers a form of relief for debtors by potentially discharging certain debts. For creditors, it offers a mechanism to recover at least some of the money they are owed, even if full recovery is not possible.