A company's insolvency
If your company's payment difficulties persist, it may become insolvent. Your company is insolvent when it cannot repay its debts as agreed. If your company is insolvent, its payment difficulties are no longer temporary.
If you notice that the payment difficulties may ultimately make your company insolvent, you should seek help immediately. If you take early action, you can start rehabilitating your business when there are still good chances of success. In the best case, you will avoid insolvency altogether.
Advice for dealing with payment difficulties is available in the Talousapu service of Enterprise Finland and in your regional business development company.
If your company becomes insolvent, you should file for insolvency proceedings suitable for your company. The options are:
- corporate reorganisation
- debt arrangement for a private person
You should seek corporate reorganisation if your company has chances of repaying its debts and becoming operational again. If you are a private trader, you can also use the debt arrangement for a private person.
If your company’s situation is so hopeless that there is no solution in sight, you may file for bankruptcy. A bankruptcy leads to the termination of your company’s business operations and the distribution of its assets to its creditors.