maksukyvytön

Maksukyvytön is a Finnish term that translates to "insolvent" or "unable to pay debts" in English. It refers to a legal and financial state where an individual or a company cannot meet their financial obligations. This inability can arise from various reasons, including excessive debt, insufficient assets, or a significant decline in revenue.

When a person or entity is deemed maksukyvytön, it typically triggers legal proceedings. For individuals, this might involve personal bankruptcy, where their assets are liquidated to pay off creditors. For companies, insolvency can lead to bankruptcy proceedings, restructuring, or liquidation, depending on the specific circumstances and legal framework. The goal of these proceedings is often to provide a fair process for creditors to recover what they can and, in some cases, to allow the debtor a fresh start.

The concept of maksukyvytön is a crucial element in financial and legal systems, providing a mechanism to address situations where debts cannot be repaid. It aims to balance the rights of creditors with the possibility of rehabilitation for debtors. The specific rules and procedures surrounding maksukyvytön status vary significantly between jurisdictions.