The Debt Respite Scheme (Breathing Space) will give someone in problem debt the right to legal protection from their creditors, this comes into force on 4th May 2021.
There are two types of Breathing Space: a standard breathing space and a mental health breathing space.
Standard Breathing Space – is available to anyone with problem debt. It gives legal protection from creditor action for up to 60 days. This will pause most enforcement and contact from creditors and freezing most interest and charges on their debts.
Mental Health Breathing Space – this is only available to someone who is receiving mental health crisis treatment. It lasts as long as the person’s mental health crisis treatment, plus 30 days (no matter how long the crisis treatment lasts).
Breathing space can only be provided by a debt advice provider and a local authority where they provide debt advice to residents.
For more information see the government website, click here
