The interim law will be extended until the end of January 2021.
Government propose an extension to an interim law that restricts a creditor’s right to file for bankruptcy, informs the Department of Justice. The interim law will be extended until the end of January 2021.
At the end of April, Parliament passed a law according to which a debtor is not presumed insolvent on the grounds that he or she has not paid a claim within a week of the creditor’s demand for payment.
A creditor who files a debtor for bankruptcy must otherwise prove that the debtor is insolvent and the insolvency is not temporary.
The goal is, according to the Ministry of Justice, to prevent bankruptcies of companies in difficulty due to the coronavirus situation. At the same time, more time will be considered and new measures taken to alleviate the situation of companies in difficulty.
The current law is valid until the end of October. According to the Ministry of Justice, the continuation of the law is to enter into force as soon as possible.
Partly because of this law, at least Finland has not yet seen a wave of bankruptcies, but a wave of bankruptcies the number of bankruptcies decreased in early January-August.