Debtor protection (‘breathing space’ scheme)
The debt respite scheme (‘breathing space’) gives consumers with problem debts certain legal protections.1 DRS Regs There are two types of breathing space.
•A standard breathing space is available to anyone with problem debt who engages with a debt adviser. It gives them legal protections from creditor action for up to 60 days. The protections include pausing most enforcement action and contact from creditors and freezing most interest and charges on their debts.
•A mental health crisis breathing space is available to someone who is receiving mental health crisis treatment and has stronger protections, lasting as long as the person’s mental health crisis treatment, plus 30 days. These include a restriction on enforcement procedures in respect of the fitting of prepayment meters and disconnection prescribed in legislation.2 Reg 7(h) and (i) DRS Regs