velkajärjestelylailla

Velkajärjestelylaki refers to the Finnish law on debt restructuring. It provides a legal framework for individuals who are unable to pay their debts to arrange a restructuring plan, often with the help of a public trustee. The primary goal of the law is to help individuals get out of severe financial difficulties and regain control over their finances, allowing them to live a more stable life.

To be eligible for debt restructuring, an individual must generally be over-indebted, meaning their debts significantly exceed their assets and income. They must also demonstrate a genuine desire to resolve their financial situation. The process typically involves a detailed examination of the individual's financial circumstances, including income, expenses, assets, and liabilities.

A debt restructuring plan can involve various measures, such as extending the repayment period of debts, reducing interest rates, or forgiving a portion of the debt. The plan is usually enforced for a set period, often several years. During this period, the individual makes regular payments according to the agreed-upon plan. If the plan is successfully completed, the remaining eligible debts are discharged.

The law aims to balance the interests of both the debtor and the creditors. While it offers a path to financial recovery for the debtor, it also ensures that creditors receive a fair proportion of what they are owed, albeit often less than the original amount. The public trustee plays a crucial role in mediating between the debtor and creditors, assessing financial situations, and overseeing the implementation of the restructuring plan.