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If the debtor has been declared insolvent by a court order, this situation is called a bankruptcy and is regulated by the Bankruptcy Act. In order to overcome payment difficulties, companies can use the rehabilitation procedure and natural persons can use the debt restructuring procedure.

Insolvency of a natural person

The main feature of insolvency is that the debtor is unable to meet the claims of the creditor and this failure is not temporary due to the financial situation of the debtor.

Insolvency of a legal person

A debtor who is a legal person is also insolvent if the assets of the debtor do not cover their obligations and such a situation is not temporary due to the financial situation of the debtor. 

The Insolvency Division supervises the activities of the debtor and the close relatives of the debtor in connection with the bankruptcy proceedings of the debtor and investigates the possible illegal behaviour of the debtor and the relatives of the debtor in causing insolvency or increasing problems with payments, conducting special audits and public investigations of bankruptcy proceedings and making proposals to the trustee in conducting bankruptcy proceedings. 


The Insolvency Division will be established as an independent structural unit of the Competition Authority and will start operating in 2022. 

Until the employment of the head of the Division, please use the information email address of the Estonian Competition Authority to forward the documents: [email protected]