Estonia, Financial Services, Legislation, Markets and Companies

Every workday, courts are discussing declaring some person permanently insolvent. The bankrupt persons include well-known figures (like social ministry former chancellor, father of environment minister, brother of supermodel) but also ordinary people.

Judges Merike Varusk from Harju county court and Kersti Kerstna-Vaks from Tartu county court pointed out that bankruptcy proceedings are often cheaper than execution proceedings by court.

With bankruptcy, punitive fees and side-claims do not keep growing, contrary to execution proceedings and while bailiffs work on the basis of a pre-determined price lists, the fee of a bankruptcy receiver is determined by the court. Thus when very large sums of money are in question, bankruptcy proceedings can be a major cost-saving path.