Debt respite scheme launched
05/05/2021

A new scheme, aptly named Breathing Space, was launched 4 May 2021.

Breathing Space will give those facing financial difficulties space to receive debt advice, or mental health crisis treatment, without pressure from creditors or mounting debts.

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.

And recognising the link between problem debt and mental health issues, these protections will be available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days.

People across England and Wales who are struggling to repay their debts could be eligible, and the Government expects 700,000 people to benefit in the first year of the scheme.

Most debts will qualify for this new scheme including credit and store cards; personal and payday loans; overdrafts; utility bills, rent and mortgage arrears; and government debts like tax and benefits.
 


Southampton

39 Chapel Road

West End

Southampton

Hampshire

SO30 3FG

 

Tel: 02381 800200

admin@poolemead.co.uk

Winchester

Tremain House, 8 Maple Drive

Kings Worthy

Winchester

Hampshire

SO23 7NG

 

Tel: 01962 790607

enquiries@pmawin.com

Membership

 

 

Newsfeed Search