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The Debt Respite Scheme (Breathing Space) gives someone in problem debt the right to legal protections from their creditors.
This guidance is to help you understand the scheme and your responsibility to the court under the regulations.
If you owe a debt that you think is eligible for a breathing space, you should get advice from a debt adviser.
If you have any questions about a specific breathing space, contact the debt adviser whose details are in the notification you received. Do not contact the court.
Your responsibilities
Stop all action and apply the protections
If you’re told that a debt owed to you is in a breathing space, you must stop all action related to that debt and apply the protections. You must keep these protections in place until the breathing space ends.
Challenging Transition Ahead for Lenders as HMT Breathing Space and Payment-Holiday Conclusions Near
LONDON, May 4, 2021 /PRNewswire/ Collections Departments faced unprecedented challenges throughout the COVID-19 pandemic, from embracing remote working to managing significant payment holiday volumes. And now, they must take action on HMT Breathing Space while transitioning from payment holidays. Auriemma Group s Collections and Recoveries Roundtable has been discussing these events and their corresponding strategies amongst the UK s top financial institutions. These two deadlines are quickly approaching, and along with the unpredictable macroeconomic environment, lenders must leverage learnings from the last year to prepare for the likely spike in volume ahead.
IFAs key in debt scheme starting next week
By Tom Higgins 30
th April 2021 8:28 am
A highly anticipated government scheme to help people with debts starts next week and advisers are set to play a critical role.
People in England and Wales seeking debt advice may soon be entitled to a 60-day pause on interest, fees and new enforcement action under the government’s new Breathing Space scheme.
Advisers are set to play a major role in the scheme, as people will only be eligible after seeking professional debt advice.
Officially called the Debt Respite Scheme, the programme has been welcomed by one of the UK’s leading debt charities, who hope the scheme may benefit up to 700,000 people per year.