Debt adjustment matters

• A debtor or a guarantor can petition for debt adjustment from the District Court in whose jurisdiction he or she resides.
• The petitioner for debt adjustment should first contact a municipal Money and Debt Advisor.
• The District Court may set a payment schedule for the debtor, laying down how he or she is to service the debts during the following years.
• The duration of the payment schedule is at least three years; during this period the debtor must assign all possible non-essential funds for servicing the debts.
• Once the debtor has serviced the debts to the extent prescribed in the payment schedule, he or she is released from liability regarding the remainder of the debts.
• The payment schedule may be altered upon petition, if the circumstances of the debtor undergo essential changes while the schedule is in effect. If the income of the debtor increases or his or her payment capability is otherwise improved, he or she must increase the amount by which the debts are serviced, as prescribed in the payment schedule.
• If the debtor fails to follow the payment schedule, it may be declared lapsed.

Forms pertaining to debt adjustment matters, PDF( in Finnish, Velkajärjestelyasiat)

For more information on money advice and debt advice, see the website of the Consumer Agency.

Updated on 31 January 2012