Velkajärjestelmä

Velkajärjestelmä, often translated as debt restructuring or debt relief program, is a legal framework in Finland designed to help individuals who are over-indebted. Its primary goal is to provide a structured way for debtors to manage their financial difficulties and achieve a sustainable financial situation. The system is administered by the Enforcement Office (ulosottovirasto) and overseen by the Ministry of Justice.

To be eligible for the debt restructuring program, an individual must be permanently unable to pay their debts and this inability must be assessed as likely to continue. The applicant must also demonstrate that their financial situation is not due to their own deliberate actions, such as excessive gambling or irresponsible spending. The process typically involves the applicant submitting a detailed financial plan to the Enforcement Office, outlining their income, expenses, and assets, as well as a proposal for how their debts can be repaid over a specified period.

If the Enforcement Office approves the application, a debt restructuring plan is drawn up. This plan usually involves a repayment period of several years, during which the debtor makes regular payments based on their ability to pay. Creditors have the opportunity to comment on the proposed plan, and their claims are prioritized according to legal regulations. Once the plan is confirmed, it is binding on both the debtor and the creditors. After successfully completing the repayment period, the remaining unpaid debts are typically discharged. The Velkajärjestelmä aims to offer a fresh start for those struggling with unmanageable debt.