velkajärjestyksen

Velkajärjestely refers to a legal process in Finland designed to help individuals who are unable to pay their debts. It is a structured method of managing and repaying overwhelming debt, offering a way out of financial distress. The process is overseen by the district court (käräjäoikeus) and aims to provide a sustainable solution for both the debtor and the creditors.

To be eligible for a velkajärjestely, an individual must demonstrate that their financial situation is hopeless and that they are unable to meet their debt obligations even with reasonable efforts. This typically involves a period of attempting to manage debts independently. The applicant must also be a private individual, and the debt must be related to personal consumption, not business activities.

The process begins with an application to the district court. If the court finds the applicant eligible, it will appoint a trustee (toissijainen valvoja) who will assess the applicant's financial situation in detail. This assessment includes an inventory of assets, income, and all outstanding debts. Based on this assessment, the trustee will propose a debt repayment plan.

The repayment plan usually lasts for a set period, typically three to five years, during which the debtor makes regular payments to the trustee based on their ability to pay, after essential living expenses are covered. At the end of the repayment period, any remaining eligible debts are discharged. This provides the debtor with a fresh start, free from the burden of insurmountable debt. Velkajärjestely is a last resort for individuals in severe financial difficulty.