Breathing space, also known as the Debt Respite scheme is now available. The scheme provides legal protection to protect people, who are struggling with their debts, from their creditors.
What is breathing space?
For anyone with problem debt.
Legal protections against the actions of creditors for upto 60 days.
Protections will put a halt to enforcement action, creditor contact, and they put a freeze on most interest and charges on their debt.
The 5 main points
There is a lot of governmental information that relates to the breathing space scheme.
▪ It is a NEW government approved scheme
▪ It comes into operation on MAY 4
▪ It offers temporary legal protection against CREDITORS
▪ It puts a temporary freeze on most INTERESTS and CHARGES on your debt
▪ Legal protections are in place for 60 DAYS
How Can I Apply?
Tell us you want to apply
You confirm that you want to apply for Breathing Space, and we’ll let you know which of your debts can be included.
We’ll submit your application.
Your application will be sent to the insolvency service who will process your Breathing Space.
Your Breathing Space starts.
Once you’re registered with the scheme, your creditors will be contacted within a few days.
While you’re on Breathing Space
You’ll need to continue making payments toward your debts, as the scheme is not a payment holiday.
Debts included in Breathing Space:
Utility Bill Arrears
Contacting your creditors
It’s important that you contact each one of your creditors and let them know that you’ve taken advice from a debt advice organisation. You can let them know over the phone, by email or letter, or in person. Of course, it is likely that your creditor will request proof that you are trying to sort out your debt problem.
You will find that a lot of creditors want to cooperate with you and help you solve your debt problems. Having a breathing space can give you time to contact a debt advice service; this is very important for the person in debt and it will generally make the creditor’s job easier.
On top of this, creditors are also required to allow you breathing space as it is included in the industry codes of practice; this is a code that almost all UK lenders and debt collectors must follow.
Will breathing space affect my credit file?
If you’re given a period of breathing space to help you deal with your debt, any payment that you miss may be recorded on your personal credit file. Because of the impact on your credit file, this might make it harder for you to obtain credit in the future.
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