On 4 May 2021 new legislation comes into force, marking a much-needed change for people in problem debt. The Statutory Breathing Space scheme, will give eligible people seeking debt advice time to focus on resolving their debts and comes as a result of years of campaigning led by StepChange.
What is Breathing Space?
Breathing Space is a 60-day moratorium period, giving eligible clients a period of legal protection from creditors, to enable them to seek debt advice and find an appropriate solution for their circumstances.
Breathing Space will be administered by the Insolvency Service, who will create and maintain an electronic service allowing debt advisors to initiate the moratorium and communicate with creditors.
What will this mean for my customers?
We have long campaigned for a statutory Breathing Space scheme, and believe that the new legislation will help stop the cycle of worsening debt, and instead help to put them on the road to recovery.