Is Breathing Space a Payment Holiday?
No. Breathing Space is not a payment holiday. You need to keep making regular payments if you can.
Here are the differences:
- Creditors must comply
- Apply via debt advisor and register with insolvency service
- Interest and charges are frozen
- Payments are not paused
- Keep making payments if you can
- Creditors must agree
- Less formal agreement between you and your lenders
- Interest and charges can be added
- Payments are paused
- Payments must be made up in future
In some cases the people you owe can still take action against you:
- After your 60 days is up
- If you are facing eviction measures