maksukyvyttömyyksiä

Maksukyvyttömyyksiä refers to a state of insolvency in Finnish law. It describes a situation where a person or entity is unable to meet their financial obligations as they fall due. This can manifest in two primary forms: ylivelkaantuminen and vararikko.

Ylivelkaantuminen, or over-indebtedness, typically applies to natural persons. It signifies a condition where an individual's debts exceed their ability to repay them, even with reasonable efforts. This can lead to a formal debt restructuring process.

Vararikko, on the other hand, refers to bankruptcy, a process that usually affects legal entities like companies. When a company declares bankruptcy, its assets are liquidated to pay off creditors. This process is managed by a bankruptcy trustee.

The legal framework surrounding maksukyvyttömyyksiä aims to provide a structured way to deal with financial distress, balancing the rights of debtors and creditors. It offers mechanisms for both individuals and businesses to manage insolvency and, where possible, to reorganize their financial affairs or wind down operations in an orderly manner. The specific procedures and consequences depend on whether the insolvency concerns an individual or a legal entity.