Enforcement

Period of limitation for enforcement

Provisions on final statute of limitations on debt effective from 1 March 2008

• According to the new Execution Code, which entered into force at the beginning of 2008, the expiry of the period of limitation for the enforcement order will also mean final limitation of the debt. A period of limitation for the enforcement order is applied to debts of natural persons and it means the time within which a court decision, a judgment by default or other enforcement order can be collected by way of enforcement. The period of limitation for enforcement is 15 or 20 years from the date of the final enforcement order or judgment by default. The provisions will be applied also to earlier enforcement orders so that the period of limitation for enforcement orders filed before 1 March 1993 will be counted from that date. This means that period of limitation for these orders expires on 1 March 2008 or 1 March 2013.

Further information: Period of limitation for enforcement

In Finland enforcement is most often a matter of collecting judgment debts. It is thus closely linked to court proceedings. In the proceedings, the validity of the creditor’s claim is investigated and a payment liability ordered on the debtor. If the judgment is not heeded voluntarily, it is carried out compulsorily, by way of enforcement. Some receivables, such as taxes and certain insurance premiums, can be enforced even in the absence of a judgment.

Also criminal sanctions of a monetary nature, such as fines and summary penal fees, are collected by way of enforcement. In addition, the enforcement authorities are charged with the carrying out of evictions, court-ordered asset seizures and court orders on child custody and right of access.

The enforcement authorities are to protect the interests of both creditors and debtors. The collection methods used in enforcement include the sending of collection letters, the garnishment of wages and salaries, and the distraint of assets.

The enforcement authorities aim for a voluntary payment after the sending of a collection letter. If no payment is forthcoming, wages, salaries, pensions or business income is garnished or assets distrained. Distrained assets may be sold by compulsory sale.

Contact information

Updated on 23 Juni 2009