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Finnish Friend - Debt

I am trying to help my Finnish friend out of their debt as they have gotten into a sticky situation.
They were automatically declared bankrupt at 8500 around 6 years ago, because they couldn't pay the interest anymore, and all that happened was the debt locked at 11percent interest. Now it is at around 17.5k. Any advice on how they should tackle this? I don't know a lot about debt and less so about Finland's approach, but I'm surprised that the answer was to reduce it down to 11 percent and let it build over the years to a point where they really have no realistic way of paying without some deal or being bailed out.

As an English speaker or utilizing online translation, where can I go to find more information/help for him?


Comments

  • Google Finland bankruptcy,  there’s a lot of information but without more details it’s difficult to understand the situation your friend is in.  To whom is he making high interest payments?
  • sourcrates
    sourcrates Posts: 30,611 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Are they in Finland or the UK?

    Bankruptcy usually releases you from all your debts, in the UK anyway, unfortunately we can`t advise on non UK debt solutions, as procedures and laws are different dependant on the country.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 22,140 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    You need a Finnish mse or a Finnish CAB. There must be something similar
  • Henrta
    Henrta Posts: 34 Forumite
    Fourth Anniversary 10 Posts
    He's making the high interest payments to the same money lenders he took out from, just that it has been reduced to  a hard 11 percent instead of any higher interest he was paying before. There's a few different money lenders he's paying too. 
    I was also shocked that they hadn't removed the debt and just continued to hammer him for 6+ years now.
  • RAS
    RAS Posts: 34,446 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You may be shocked but his lenders may legally able to do that in Finland.

    Is he resident in the UK? Go to www.lemonfool.co.uk and get him to complete a statement of affairs. That might show whether he has any spare income.

    He also needs to take advice from Finnish sources about how he can reduce the amount of debt he is in?
    If you've have not made a mistake, you've made nothing
  • sourcrates
    sourcrates Posts: 30,611 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    RAS said:
    You may be shocked but his lenders may legally able to do that in Finland.

    Is he resident in the UK? Go to www.lemonfool.co.uk and get him to complete a statement of affairs. That might show whether he has any spare income.

    He also needs to take advice from Finnish sources about how he can reduce the amount of debt he is in?
    If he was in the UK it wouldn`t matter, as bankruptcy wouldn't follow him here.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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