The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 will come into force on 4 May 2021. Creditors will need to have processes in place to comply with their obligations when a notification is received. For further information read our article written by Katie Farmer and Charlie Howe.
The Regulations will provide legal protection to individuals in what the government guidance refers to as “problem debt”. This scheme will only be applicable for individuals that have spoken with a debt advisor authorised by the Financial Conduct Authority (FCA). If the debtor meets requirements of the scheme, the debt advisor will be able to apply for one of two options available under Breathing Space.