New scheme to give people in problem debt breathing space launched
Industry News | 04/05/21
The new statutory debt respite scheme, more commonly known as Breathing Space, was introduced on 4th May.
Under the scheme, people will be given legal protections from their creditors for 60 days, with most interest and penalty charges frozen, and enforcement action halted. They will also receive professional debt advice to design a plan which helps to get their finances back on track.
The Insolvency Service is responsible for delivering Breathing Space. It has developed and will maintain an electronic service used by debt advisers for starting, updating and ending a Breathing Space. The Insolvency Service will send notifications to creditors and their agents about a Breathing Space. It is also responsible for maintaining a private register of individuals in a Breathing Space or whose Breathing Space ended or was cancelled in the past 15 months.
The Insolvency Service has produced guidance for creditors.
click here for details