Company’s financial difficulties and their prevention

Bankruptcy may cause shame even if there is no reason for it. Closing down business is rather a new start, because you are one experience smarter and more prepared for new challenges.

Do not pay attention to what others may think about you and your situation but: 

• accept that your identity may change as a result of bankruptcy
• focus on resting if you feel exhausted
• talk about negative feelings to someone close to you, other entrepreneurs or a professional.
• redirect your thoughts and try to find joy in something new

When you are ready, consider whether you want to become an employee or have a new business idea in mind.

Register as an unemployed jobseeker at the TE Office immediately after the end of your business activities in order to receive unemployment benefits. Find out if Kela could also offer you 

• general housing allowanceOpens in a new window.
• social assistanceOpens in a new window..

You can find more detailed instructions on securing income and applying for work on the Employment and subsistence guide.

If you have personal debt from your business activities, you can apply for

• an arrangement loan from a bank for the payment of old debts and a guarantee for the loan from the Guarantee Foundation
• debt arrangement of a private person after the end of business activities. 

You can get help with applying for a restructuring loan and a debt arrangement for a private person from Financial and Debt Advisory Services.

Also read the Guarantee Foundation's instructions for coping with debts (in Finnish)Opens in a new window..

A bankruptcy as such does not prevent you from setting up a new enterprise as long as you have fulfilled your company's statutory obligations. These include paying taxes and proper accounting arrangements.

Although, in principle, you may be able to set up a new enterprise during or after the bankruptcy, in practice it can be challenging:

• The Tax Administration may prevent your new company from being admitted to the prepayment register.
• Your payment default entries and your links to a company with payment defaults often complicate practical matters, such as opening a bank account or obtaining a telephone subscription.
• Access to funding may be difficult.
• In trades subject to a licence, such as a restaurant selling alcohol, it may be difficult to obtain the required permits.

If you have been prohibited from engaging in business activities, you cannot set up a new company. This prohibition may last two to five years.