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Restructuring and insolvency law in Finland is designed to provide fair and clear processes for businesses and individuals facing severe financial distress. The framework aims to balance the interests of debtors, creditors, and other stakeholders. In Finland, both corporate restructuring and bankruptcy are regulated under national law, enabling distressed companies to either recover through financial reorganization or, if necessary, undergo orderly liquidation. The legal procedures focus on maximizing creditor returns while allowing viable businesses an opportunity to survive and continue their operations.
Restructuring and insolvency are complex areas of law, often involving detailed financial analysis, negotiations with creditors, and compliance with strict legal requirements. Seeking legal help is crucial if you or your company are:
Having a legal professional ensures you understand your rights and obligations, follow correct procedures, and avoid actions that could lead to personal or criminal liability.
Finland’s key regulations for restructuring and insolvency include the Restructuring of Enterprises Act and the Bankruptcy Act. Here are some important aspects of local law:
Restructuring is a process for restoring a viable business through debt and operational reorganization, allowing continued operations under court supervision. Bankruptcy, on the other hand, is a procedure to liquidate assets of an insolvent debtor and distribute proceeds to creditors, usually leading to the dissolution of the company.
Both the debtor and its creditors can file for corporate restructuring or bankruptcy. For private individuals, debt adjustment can be initiated by the person or, in certain cases, by social welfare authorities.
Creditors are notified about the restructuring application and have the right to participate in the approval or rejection of the restructuring plan. Their claims are registered and considered during the process.
Directors have a duty to act in the best interest of creditors once insolvency is apparent. Failure to fulfil their duties, such as delaying bankruptcy filings or preferential payments, may result in personal liability and even criminal sanctions.
Yes, companies often continue business operations during the restructuring process, subject to supervision by an appointed administrator and court oversight.
Finnish law provides significant protections for employees. Unpaid wages can be claimed from the wage guarantee fund, and employees may be entitled to continued employment depending on the circumstances.
Individual debtors can apply for debt adjustment, which may reduce or restructure payment obligations through a court-approved repayment plan.
Courts oversee both restructuring and bankruptcy proceedings, appoint administrators or liquidators, and approve restructuring programmes or liquidation decisions.
Yes, international creditors have the same rights as local creditors, subject to EU regulations and relevant treaties concerning cross-border insolvency situations.
Yes, debtors and creditors can negotiate out-of-court settlements or voluntary arrangements, but these require mutual agreement and are not subject to court protection unless formal proceedings are initiated.
For more information and practical assistance, the following resources and organizations can be useful:
If you are facing financial distress or need advice on restructuring and insolvency, start by assessing your financial situation and gathering relevant documentation (such as financial statements, creditor lists, and contracts). It is advisable to consult a lawyer who specializes in restructuring and insolvency as soon as possible. A legal expert can help you understand your rights, obligations, and the range of options available, including court-supervised processes or alternative arrangements. Timely legal advice can protect your interests, prevent legal pitfalls, and help you make informed decisions about your or your company’s financial future.
Lawzana helps you find the best lawyers and law firms in Finland through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback.
Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.
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