konkurssimenettelyt

Konkurssimenettelyt refer to the legal process in Finland by which a company or an individual is declared bankrupt. This occurs when a debtor is unable to pay their debts. The primary goal of bankruptcy proceedings is to liquidate the debtor's assets to satisfy their creditors as fairly and efficiently as possible.

The process is initiated by a petition filed with the district court. This petition can be filed by the debtor themselves or by one or more creditors. If the court finds the debtor insolvent, it will declare bankruptcy. Following the declaration, a bankruptcy trustee is appointed by the court. The trustee's role is crucial; they take control of the debtor's assets, investigate the financial situation, identify and secure all property belonging to the estate, and then sell these assets.

The proceeds from the asset liquidation are then distributed among the creditors according to a predetermined order of priority. Secured creditors, such as those with mortgages, are typically paid first from the sale of the specific assets they hold security over. Unsecured creditors receive a distribution based on their claims, often receiving only a fraction of what they are owed.

The bankruptcy proceedings conclude when the trustee has completed the distribution of assets and submitted a final report to the court. For individuals, bankruptcy can offer a fresh start by releasing them from most of their remaining debts, although certain debts may persist. For companies, bankruptcy usually signifies the end of their operations. The legislation governing these procedures is primarily found in the Finnish Bankruptcy Act.