The landlord may begin enforcement proceedings after obtaining an enforceable decision at a district court. At the same time, the landlord may request that the enforcement authorities serve notice of the judgement by default.
The enforcement authorities assess whether the debtor has income or other assets that may be used to pay off the debt. The enforcement duty is performed by National Enforcement Authority Finland, a nationally operating organisation.
An application for enforcement is made in writing or electronically to the National Enforcement Authority Finland. The case is initiated by the creditor, i.e. the landlord, by submitting the application for enforcement and the grounds for it (judgement by default, court decision, or court-confirmed settlement) to the National Enforcement Authority Finland. The easiest way to do this is at the Judicial Administration Department’s electronic service. If you have used the service to submit your application for a summons, simply select ‘Siirrä ulosottoon’ (Submit to enforcement) in the decision you have received. In this case, no printed decision is required as the decision is already available in the court registry. Another alternative is to submit the application for enforcement and its appendices to the National Enforcement Authority Finland by e-mail or mail. The application for enforcement is available as a PDF here.
In principle, enforcement measures may be put into action on the authority of the district court decision, even if an appeal has been made. However, they are not usually completed until a court decision is final (entered into force). Any financial assets may be remitted to the creditor if the creditor provides a security for a scenario where the court decision is later overturned in a higher court. Otherwise, any accumulated money is remitted to the creditor only after the decision is final.
The debtor can also provide a security deposit to avoid enforcement based on a district court decision that has not yet entered into force. Options for providing a security deposit include mortgages and guarantees.
A district court eviction decision that is not final may be enforced if the creditor (landlord) provides a security for any liabilities, expenses, and cancellation of enforcement due to reversal or alteration of the decision.
If the landlord receives payments outside enforcement, they are obligated to inform the bailiff. This may be the case if, for instance, the landlord is able to cover some of the outstanding rents after the lease has ended with the security deposit specified in the lease agreement.
Regular and limited enforcement
In regular enforcement, all debtor’s assets are garnished (financial assets, movables and fixed assets). However, the creditor may limit the enforcement proceedings by requesting limited enforcement. In this case, the debtor’s sources of income and assets are investigated. In limited enforcement, the proceedings are limited to salaries, pensions and other such income, receivables, or assets that can be transferred to the creditor without liquidation. If the creditor requests limited enforcement, they cannot apply for passive registration of the debt.
Passive register
When the debtor is found not to possess distrainable assets or income, the enforcement case is normally closed by issuing a certificate of lack of means. However, the creditor may apply for the passive registration of the debt in the event that the debtor lacks means or the debtor, whose whereabouts are unknown, is found to lack means. No active enforcement measures are directed at debts in the passive register, and the case is not considered as pending in the enforcement office. However, if the debtor obtains distrainable assets (e.g. a tax refund) while the debt is in the passive register, the assets will be distrained so as to cover that debt. The passive registration will remain in effect for two years from the date of the certificate of lack of means.
Enforcement fees
Enforcement is subject to various fees. Some of the fees are based on the number of payments collected from the debtor and some on the measures taken (e.g. eviction). The latter are known as execution fees. Only 50% of these fees are collected if no actual execution measures have been taken or if the plaintiff sees to the management of evicted assets in, for instance, the execution of an eviction. A more detailed price list for enforcement fees is available here.
Period of limitation of enforcement and time-limitation of debt
As a landlord, you should pay attention to the limitation period of the debt. When a final decision has been issued concerning the debt, the limitation period is five years from the date of the decision. After the interruption of the period of limitation of the debt, a new limitation period of the same length as the earlier period starts to run. The interruption of the limitation period may be arranged informally or through official measures. When enforcement proceedings are started in the matter, the limitation of the debt is interrupted and a new limitation period of the same length as the earlier one is started when the pendency of the enforcement expires. However, the period of limitation for enforcement sets a final limit for how long a debt can be collected through recovery proceedings and the final limitation of the debt.
The enforcement order (e.g. decision by a district court or judgement by default) imposing the payment liability to a natural person is enforceable for 15 years. The period of limitation is extended to 20 years if the creditor (landlord) according to the enforcement order is a natural person. The period of limitation is calculated from the date of the judgement by default or the final decision or other final enforcement order. For instance, a district court decision or a judgement by default imposing the payment liability to the tenant is enforceable for 20 years. Thus, a private landlord may have an enforcement case valid for 20 years if the debt remains unpaid. Even in this case, the landlord should keep the five-year limitation period or the possible interruption of the period of limitation in mind. The expiry of the period of limitation will also mean final limitation of the debt.
If no judgement has been sought for the debt, it expires in three years from the due date. In other words, a rental debt expires in three years from its due date unless the expiration has been interrupted. The time limit for the final expiration of a natural person’s debt, calculated from the due date, is 20 years. If the creditor is a natural person, the expiration period is 25 years. If the landlord does not seek a judgement for the debt, he/she may demand payment for 25 years if the debt is not paid off. Even in this case, the landlord must remember to interrupt the limitation period before the three-year expiration period has passed or before the three years since the previous interruption have passed.