A new free service officially known as the Debt Respite Scheme or Breathing Space Scheme was launched by the government on 4th May 2021. The purpose of the scheme is to help people in England and Wales who are struggling with their debts, get that a little bit of extra time to get back on track, without the additional pressure from creditors and debts piling up.
Under the scheme you will have protection from creditors for up to 60 days, with interest and penalty charges frozen and enforcement action paused.
This gives you the time to seek professional debt advice and figure out your options for dealing with your debts. There are some eligibility checks involved, before you can apply.
Firstly you must seek advice from a Debt Advice Provider who is authorised by the Financial Conduct Authority (FCA), such as ourselves. They will be able to assess if you are eligible for the Breathing Space Scheme, and if you choose to apply, they can submit your application to the Insolvency Service.
In order to qualify for the scheme you must:
Debts included in a Breathing Space can be of any amount and must be one or more of the below.
When your application is submitted, it will begin the day after your details are placed on the Breathing Space Register, which normally takes about 2 working days.
For the first 20 days your creditors can try and challenge the application and any debts included in it.
You can add more debts to your Breathing Space if need be, providing the debt existed before your application was made. They will then be covered for the remainder of the 60 days along with your other debt/debts. Any debts incurred after your Breathing Space started cannot be included.
After 25-35 days into your Breathing Space, the debt advisor that submitted your application must contact you for a review.
During the 60 days Breathing Space you will have the time to consider how you are going to deal with your debts, and then take the necessary steps to get any solutions put in place, ready for when the Breathing Space finishes.
For more information on The Breathing Space Scheme, or if you are struggling with your debts, please get in touch.
I tend to panic for panics sake and all those at National Debt Relief ease my mind at every turn. Nothing seems too much.
I'm 4 months into the plan and have absolutely no complaints. Thank you so much.
Thank you all for helping me out of a difficult time with my finances! Great service from a great company.
From the moment I started dealing with National Debt Relief I knew they were the right choice for me.