If the estate does not have funds to continue the proceedings, the estate administrator files a lapse proposal. If none of the creditors accepts responsibility for the costs of the proceedings, the estate administrator submits an application to the district court for the lapse of the bankruptcy. The debtor’s representative will be consulted on this.
If the district court decides that the bankruptcy should lapse, the bankruptcy proceedings are ended, the estate administrator’s powers are lifted and your company is closed down. If your company is a limited liability company, the Finnish Patent and Registration Office will remove it from the trade register automatically. If you operate under any other form of business, you must notify the matter to the Trade Register.
There may be some funds left in a bankruptcy estate that lapses. In such a case, the bailiff will distrain the assets that are not needed to cover the bankruptcy costs and the estate’s other debts.