Debt adjustment for entrepreneurs and self-employed persons

Private entrepreneurs and self-employed persons can apply for a debt adjustment for private individuals for their business debt or personal debt.

Companies (general and limited partnerships, limited liability companies) are not eligible for a debt adjust-ment for private individuals for their business debt. However, an entrepreneur with a company may apply for a debt adjustment for their personal debt.

If your business operations have ended, you can apply for a debt adjustment for personal debt to manage the remaining business debt. You do not need to meet the conditions applied to entrepreneurs and self-employed persons, as the debt adjustment process for private individuals is applied to your situation.

Debt adjustment conditions for business debt

The debt adjustment process for private individuals is a lighter and more affordable process than corporate restructuring. In addition to your business debt, the debt adjustment process is used to manage your possible personal debt.

Conditions for a debt adjustment include the following:

• You are a private entrepreneur or self-employed
• In addition to you, your business had up to two employees in the last full financial year
• Your business generates enough revenue that you can pay your business expenses that incur during the debt adjustment
• Your business must generate profit
• Your available funds (Link) are more than zero during the debt adjustment
• Rebalancing the finances of your business does not require measures related to your business activities, e.g. corporate restructuring

To apply for debt adjustment, you must have an expert statement on the financial status of your business and its viability. Contact the Yrittäjän talousapu counselling service for more information.

Debt adjustment conditions for the personal debt of an entrepreneur

The personal debt of entrepreneurs and self-employed persons can be adjusted regardless of the company form of the business. In this case, only personal debt is adjusted, i.e. business debt is not adjusted.

The following conditions must be met to be eligible for a debt adjustment:

• You have no business debt or very little business debt
• If you have a small amount of business debt, it must not be due or unpaid
• You can cover all expenses of your business
• The debt of liable partners of general and limited partnerships can only be adjusted if the company is solvent and not under the threat of becoming insolvent, and if corporate restructuring is being carried out

Debts from prior business activities are considered personal debt if the business activities have ended and the liabilities of the debtor have been sorted out.

Guidance for entrepreneurs

The Yrittäjän talousapu counselling service provides expert advice on business finances and mending them. Access the service by calling, or submit a contact request.

You can also discuss your situation with a financial and debt counsellor free of charge. Advise is available every business day by telephone, or you can use the chat or e-services.

More information for entrepreneurs

The Suomen yrittäjät organisation and the Yrittäjän talousapu counselling service organise free training for entrepreneurs .

Guide ‘Company’s financial difficulties and their prevention’ (suomi.fi)

The Finnish Tax Administrations instructions on payment arrangements‍