Velkakirjan

Velkakirja is a written document in which a debtor acknowledges owing a specific amount of money to a creditor and promises to repay it under stated terms. In Finnish civil practice, it serves as evidence of a debt and can streamline later recovery or enforcement, particularly in small claims or private lending.

A typical velkakirja identifies the parties, the principal amount, any agreed interest, the due date or repayment schedule, and the place and date of issue, usually with the debtor’s signature. It may also specify consequences of late payment, penalties, and any collateral or guarantees. Although a velkakirja can be simple, including clear terms improves its evidentiary value in disputes.

In terms of legal effect, a velkakirja provides a written basis for the creditor’s claim. Because it is signed, it carries more weight than an informal arrangement. Its enforceability can be strengthened by notarization or additional witnesses, but valid execution and absence of fraud or coercion are important for its enforceability. The document does not automatically guarantee payment; collection may still require formal enforcement actions if the debtor resists.

Rights under a velkakirja can generally be transferred or assigned to another party, allowing the creditor to pursue collection through a different holder. Limitations include the risk of forgery, alterations, or disputes about the terms or the debtor’s ability to pay. Velkakirja remains a common, straightforward debt instrument used in private lending and other non-formal borrowing scenarios.