Debt settlement

In cases of debt settlement, we will prepare and submit the application to the court on your behalf, and/or if necessary will also apply for changes to the debt repayment programme.

Preconditions for applying for debt settlement for private persons

A private person can apply for debt settlement if they are unable to settle their debts due to insolvency. The main grounds for insolvency should be a substantial deterioration of financial standing due to illness, work disability, unemployment or other material change in circumstances, primarily beyond the debtor’s own control. As a rule, debt settlement cannot be reached if the person has accumulated the debt through frivolous means. It should be noted, however, that the right of debt settlement may also be granted in such cases if there are sufficiently weighty grounds for doing so.

Debt settlement application are filed with the local district court, which then decides whether it is possible to initiate the process. If the statutory preconditions for debt settlement are met, the district court will appoint an official receive to draw up a payment programme for the debtor. The length of debt settlement payment programmes are usually three to five years, after which time the remainder of the debt is written off by the debtor. In general, the biggest problem facing people who are over-indebted is that the debt repayments seem to be never-ending. When the amount of debt is high, a substantial part of each repayment goes to paying off interest alone, so the capital of the loan itself is not significantly reduced. Debt settlement is aimed at tackling this problem by setting a repayment schedule with a fixed end point. This tends to give the indebted person the motivation to continue paying the debt until the end of the programme.

Contact us to find out more about debt settlement. We will prepare and submit the debt settlement application to the court on your behalf, and/or if necessary will also apply for changes to the debt repayment programme. It is possible to obtain free state legal aid for drawing up a debt settlement application.


Prices include VAT 24%.

Litigation and other matters

from 150 € /h

The price if you are not entitled to state legal aid or you do not have legal expenses insurance. The hourly rate depends on the complexity of the case.

In matters related to debt settlement, you will be assisted by:

Hanna-Maaria Okkonen

Hanna-Maaria Okkonen

LL.M., attorney-at-law, authorised trial assistant, member of the Finnish bar Association

+358 40 5090 580

Jussi Ylönen

Jussi Ylönen

LL.M., attorney-at-law, authorised trial assistant

+358 40 4557 658