Pankrotimenetlus

Pankrotimenetlus, commonly translated as bankruptcy proceedings or insolvency proceedings, is a legal process initiated when an individual or a company is unable to meet their financial obligations. This process aims to either liquidate the debtor's assets to pay off creditors or to reorganize the debtor's finances to allow them to continue operating. The initiation of bankruptcy proceedings typically occurs when a debtor files for bankruptcy voluntarily or when creditors petition the court to declare the debtor bankrupt.

In Finland, where the term "pankrotimenetlus" is used, the process is governed by specific legislation. A court oversees the proceedings, appointing an administrator or trustee who is responsible for managing the debtor's estate. The administrator's role includes gathering all assets, identifying all creditors and their claims, and distributing any available funds according to legal priorities. Creditors are typically ranked in order of their security or legal standing.

There are different types of bankruptcy proceedings. Liquidation bankruptcy involves selling off the debtor's assets to satisfy debts, effectively ending the business or individual's financial life. Reorganization or restructuring, on the other hand, aims to help the debtor recover by developing a plan to pay off debts over time, often with reduced interest or modified payment terms. This can allow a viable business to continue operating. The ultimate goal of pankrotimenetlus is to provide a structured and fair resolution for both the debtor and their creditors.