konkurssidest

Konkurssidest is a term that broadly refers to the process of bankruptcy or insolvency proceedings in Estonia. When an individual or a company is unable to meet their financial obligations, a konkursus can be initiated. This legal procedure aims to fairly distribute the debtor's assets among their creditors.

There are two main types of konkursid: voluntary and involuntary. A voluntary konkursus is initiated by the debtor themselves when they recognize their inability to pay their debts. An involuntary konkursus is initiated by creditors who have not been paid.

The process typically involves the appointment of a bankruptcy trustee who takes control of the debtor's assets. The trustee then liquidates these assets to generate funds, which are then distributed to creditors according to a legally defined order of priority. Secured creditors usually have the first claim on specific assets, followed by unsecured creditors.

During the konkursus, the debtor's business operations may cease, and if it's an individual, certain financial activities might be restricted. The primary goal is to provide a structured and orderly resolution to financial distress, ensuring that creditors receive as much of their owed money as possible and that the debtor can eventually be discharged from their outstanding debts, allowing for a fresh financial start. The specific rules and procedures are governed by Estonian insolvency law.