Best Restructuring & Insolvency Lawyers in Finland
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
List of the best lawyers in Finland
Browse restructuring & insolvency law firms by city in Finland
Refine your search by selecting a city.
About Restructuring & Insolvency Law in Finland
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.
Why You May Need a Lawyer
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:
- Facing mounting debts and unable to meet payment obligations
- Receiving demands from creditors or facing debt collection measures
- Unsure whether to apply for restructuring or bankruptcy
- Needing advice on how to protect personal or company assets
- Considering voluntary arrangements with creditors
- Worried about legal responsibilities as a company director
- Involved in cross-border insolvency situations
- Negotiating with creditors or restructuring ongoing business activities
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.
Local Laws Overview
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:
- Corporate restructuring: The Restructuring of Enterprises Act allows financially distressed companies to apply for court-supervised restructuring. This aims to restore profitability through a restructuring programme, often including debt reorganization and adjustment of business operations.
- Bankruptcy: Under the Bankruptcy Act, if a debtor is insolvent and unable to pay debts, bankruptcy proceedings may be initiated. An administrator is appointed to liquidate the assets and distribute proceeds to creditors.
- Creditor protection: Finnish law ensures fair treatment of creditors, providing clear rules about the priority of claims and payment distribution order.
- Director duties: Company directors must act in the company’s and creditors’ best interest. Failing to file for insolvency in time or favoring certain creditors can result in personal liability.
- Personal insolvency: Private individuals can seek debt adjustment under the Act on the Adjustment of the Debts of a Private Person, offering relief through structured repayment plans.
- Cross-border cases: EU regulations and international treaties play an important role in Finnish insolvency, especially for companies with assets or operations in multiple jurisdictions.
Frequently Asked Questions
What is the difference between restructuring and bankruptcy in Finland?
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.
Who can initiate restructuring or bankruptcy proceedings?
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.
How are creditors involved in the restructuring process?
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.
What are the consequences for company directors during insolvency?
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.
Is it possible to continue business during restructuring?
Yes, companies often continue business operations during the restructuring process, subject to supervision by an appointed administrator and court oversight.
What happens to employees during insolvency proceedings?
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.
How does insolvency affect personal debts?
Individual debtors can apply for debt adjustment, which may reduce or restructure payment obligations through a court-approved repayment plan.
What is the role of the court in insolvency matters?
Courts oversee both restructuring and bankruptcy proceedings, appoint administrators or liquidators, and approve restructuring programmes or liquidation decisions.
Can international creditors participate in Finnish insolvency?
Yes, international creditors have the same rights as local creditors, subject to EU regulations and relevant treaties concerning cross-border insolvency situations.
Are there alternatives to formal insolvency proceedings?
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.
Additional Resources
For more information and practical assistance, the following resources and organizations can be useful:
- Finnish Ministry of Justice - Responsible for legal frameworks and public information
- Finnish Bankruptcy Ombudsman - Supervises the administration of bankruptcy estates
- Finnish Financial Supervisory Authority - Offers guidance for financial service providers
- Chamber of Commerce - Provides support and training for business owners
- Local law firms specializing in restructuring and insolvency
- Consumer Advice Services for individuals facing financial difficulties
Next Steps
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.
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.