Konkurssissa

Konkurssissa is a Finnish term that refers to the state of being insolvent, usually in the context of a company or individual that cannot meet its financial obligations. In Finland, bankruptcy is governed by the Bankruptcy Act of 1975, which provides a framework for both initiating and carrying out insolvency proceedings.

To file for konkursissa, the debtor must submit an application to the district court, which then appoints an administrative trustee. The trustee's main tasks are to assess the debtor’s assets, manage cash flows, and negotiate with creditors. The court may decide to either liquidate the debtor’s assets, continue business operations under supervision, or, in some cases, dismiss the case if the debts are minimal.

Creditors play a pivotal role in the process. They register claims in a public register maintained by the court. Claims are prioritized according to Finnish law, with secured creditors, employees’ wages, and the state receiving the highest priority. Once assets are liquidated, the proceeds are distributed sequentially according to this hierarchy. If there are insufficient funds, unsecured creditors may receive a proportionate share based on the overall assets available.

There are two principal types of konkursissa: corporate and personal. Corporate bankruptcy focuses on companies, whereas personal bankruptcy deals with individuals. Although the legal procedures share common principles, personal bankruptcy also incorporates provisions for rehabilitation and re-entry into the financial system, such as mandatory repayment plans and debt consolidation schemes.

Applicants who are declared bankrupt face a range of consequences. For individuals, there can be restrictions on driving, financial operations, and professional licensing, while companies become subject to dissolution or forced sale. However, both corporate and personal bankruptcies aim to provide an orderly means of resolving debts, allowing creditors to recover as much as possible, and giving debtors a structured path to financial rehabilitation.