Bankruptcy and reorganization

Our office has broad experience in bankruptcy matters. We act as bankruptcy trustee in bankruptcies initiated by creditor. In bankruptcy proceedings initiated by debtor we make the application to the Court and act as trustees. As a trustee we first wind up the bankrupt’s estate and draft the estate inventory. After these actions we terminate the bankruptcy proceedings which include i.e. securing of claims, realization of assets and rendering funds to creditors. According to law the trustee is also obliged to attend to interests of the debtor, too.

Basic information about bankruptcy

The grounds of bankruptcy often rest on excessive indebtedness and liquidity problems. In bankruptcy process the whole estate of the debtor will be used to settle his/hers debts relatively according to the amount of each debt. Bankruptcy application can be made by the debtor or by the creditor. The District Court can declare a debtor bankrupt if he is permanently unable to settle his maturing debts. In Finland a company, other corporation, private person or death estate can be declared bankrupt.

Reorganization

The purpose of reorganization is to secure the functional conditions of a viable company. The difference between a company to be reorganized and a bankrupt company is, that the first mentioned is not inviable. Its financial difficulties are temporary and can be remedied. The proceedings can be divided in five phases: starting, planning, policy making, consolidation and implementation. These different stages require judicial expertise. The most typical reason for unsuccessful reorganization application is a poor application. Reorganization will also be taken under consideration too late.

We assist

in matters related i.e. to

  • bankrupt application
  • acting as trustee
  • securing of claims
  • reorganization of a company
  • reorganization application
  • receiver and inspector in reorganization process