The Debt Respite Scheme (Breathing Space)
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The Debt Respite Scheme (Breathing Space)
Today, (4 May) the Government introduced the Debt Respite Scheme (Breathing Space). This scheme, which was initially outlined by Government in February 2020, enables borrowers with problem debt to request legal protection from creditors in order to regain control of their finances.
There will be two types of schemes:
Standard breathing space
- This will give the customer legal protection for up to 60 days.
Mental health crisis breathing space
- This will last for as long as the customers’ mental health crisis treatment, plus 30 days.
Both schemes will require the services of either a debt advice provider (who is authorised by the Financial Conduct Authority to offer debt counselling) or a local authority (where they provide debt advice to residents).
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If you have any questions regarding the new schemes, please do not hesitate to get in touch with us via the button below.
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Paul Rouse Partner – Restructuring Services - London
Restructuring and insolvency
Our restructuring and insolvency teams provide rapid support and creative solutions to help guide you through periods of financial uncertainty, preserving and maximising value for all stakeholders.