Välttämistarkoitus

Välttämistarkoitus refers to a legal concept primarily found in Finnish law, often translated as "avoidance purpose" or "intent to avoid." It is a crucial element in determining the validity of certain legal transactions, particularly in the context of insolvency and bankruptcy. Essentially, it describes a situation where a debtor enters into a transaction with the specific aim of placing assets beyond the reach of creditors or otherwise hindering their ability to recover their debts.

The concept is most relevant in actions for the avoidance of transactions, also known as clawback actions. If a debtor, while insolvent or on the verge of insolvency, makes a transaction that benefits a specific party or reduces their assets, and this action is found to have been done with välttämistarkoitus, the transaction can be declared void or set aside by a court. This allows the assets to be returned to the debtor's estate for the benefit of all creditors.

The existence of välttämistarkoitus is a factual determination made by the court, and it often requires evidence of the debtor's subjective intent. Factors that might be considered include the timing of the transaction, its nature, the relationship between the debtor and the recipient of the benefit, and whether the transaction was conducted at arm's length or at significantly below market value. The purpose of the välttämistarkoitus rule is to ensure fairness and prevent debtors from unfairly disadvantaging their creditors through deliberate actions.