The foreclosure system guarantees creditors that at least part of the debts will be paid back. On the other hand, a person with low-income loses significant portion of his or her income to foreclosure upon foreclosure, which weakens his or her livelihood and work incentives.
From the debtor’s point of view, the Finnish foreclosure system can be described as internationally strict, at least in terms of its duration. The livelihood of the foreclosure debtor can potentially be improved by various means, such as by changing the protection ratio or by changing or periodizing the foreclosure time. The key is to take the whole into account, above all in term of job supply.
The aim of this research project is to provide information on the renewal of the foreclosure system so that the livelohood and participation of debtors in the labor market will be improved without the risks increasing unreasonably from the creditor’s point of view.
This research project will be carried out in collaboration with Labour Institute for Economic Research.