While we all gradually ease out of lockdown and back to what we hope is a more normal life, there are many who are struggling with debt. In response to this, the Government has today (4 May 2021) launched a new Debt Respite Scheme (Breathing Space).
The aim of the scheme is to provide a “Breathing Space” to people struggling with debt, so that they may try and organise their finances without the immediate increased pressure from creditors.
The scheme allows people to apply for the Breathing Space, which provides legal protection for 60 days. During this period, enforcement action from creditors is halted and most interest and penalty charges are frozen.
For those people suffering with mental health issues, they will potentially be able to seek additional protection with the Breathing Space for the duration of their treatment, plus an added 30 days respite.
Further information regarding the Debt Respite Scheme (Breathing Space) can be found on gov.uk, here.