A company's actions can lead to a situation in which the company is other than temporarily unable to pay its debts as they fall due. This situation is called insolvency.
If a company is facing insolvency, it is advisable to contact experts as soon as possible, so that the company can take steps for the rehabilitation of the business at its own initiative, before becoming insolvent.
Finnish legislation includes three parallel insolvency procedures:
debt arrangements for private persons
Collective implementation and the inability of the debtor to pay their debts are two common factors in all of these procedures. The proceedings determine the entire financial standing of the debtor, including any and all assets and debts.
The reorganisation of a company and the debt restructuring of a private person aim to restore the operational capacity of the debtor. Bankruptcy, in turn, leads to closing down business operations and the distribution of funds to creditors.