Can judicial decisions opening insolvency proceedings be registered in the Land registry in accordance with your legislation?
If affirmative, what effects do these registrations produce?
According to Finnish law judicial decisions opening insolvency proceedings can be registered in the Land Registry (LR) in Finland, even if the decisions are made in foreign country.
Always, when these kind of proceedings are registered in LR in Finland, it means a warning to third parties. Information about registration is public. No one can claim that one didn’t knew about the opening insolvency proceeding when it’s registered.
The consequences of registration depends on the legislation concerning the insolvency proceeding itself. If the registration is made based on insolvency proceeding according to foreign legislation, the consequences for subsequent registrations depends also on that foreign legislation. So it depends on that foreign legislation, if registration means restrictions to subsequent registration or some other effects.
According to Finnish law:
o the estate administrator shall see to the management and liquidation of the assets of the debtor and to the other administration of the bankruptcy estate
o the estate administrator must send for registration to LR the decision about opening and closing the bankruptcy proceeding
• Creditors’ voluntary arrangements under insolvency legislation with confirmation by the court (entrepreneurs, companies, enterprises)
o the administrator appointed by court must send for registration to LR the decision opening and closing the insolvency proceeding
o in between the opening and closing of the insolvency proceeding the owner of the property (entrepreneur or company) need the approval from the administrator appointed by the court
• Creditors’ voluntary arrangements under insolvency legistalation with confirmation by the court (private persons):
o in some cases the administrator appointed by court has sent for registration to LR the decision opening the insolvency proceeding
o registration means warning to the third parties
o no restriction for subsequent registration
Some national characteristic (consider relevant):
• Registration of foreclosure
o the bailiff informs foreclosure for registration to LR but nowadays also LR and bailiffs data base are interconnected so the information of foreclosure is possible to transfer from bailiffs data base direct to LR.
o when registered, subsequent registrations needs bailiffs approval
• Registration of prohibition of transfer
o mainly the bailiff, but also some times the court, the prosecutor or head of the investigation sends decisions of these proceedings for registration to LR
o when registered subsequent registrations needs to have bailiffs approval