As several other countries in the European Union, Finland has also decided to modernise its insolvency legislation by means of updating its Bankruptcy Act in July this year.
The Finnish Bankruptcy Act, which entered into force in 2004 after a comprehensive reform of the outdated Bankruptcy Code from 1889, is fairly modern, functional and efficient. According to the World Bank’s Doing Business Ranking 2018, Finland was ranked second best in the world in the category ‘Resolving Insolvency’, only after Japan. Regardless of the fact that there is a consensus between the creditors, insolvency practitioners and the Finnish Ministry of Justice that the current Finnish Bankruptcy Act works well, minor streamlining and updating was required.
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