>

Covid-19 may have left some families struggling to pay their mortgage, rent, living costs and other bills.  This new law will ensure they have some "breathing space", giving them time to find a way to pay off their debts, from 4 May 2021.

The new law will cover two types of breathing space, according to the government guidance.

The "standard" offers legal protection from creditor action for up to 60 days", with most enforcement action and contact from creditors paused and most interest and charges frozen.

The "mental health" breathing space will include the same protection but over a longer period of time. For people in need or undergoing mental health treatment, the breathing space will cover the whole treatment length and an additional 30 days from when the treatment ends.

The guidance also notes that the breathing space is "not a payment holiday".  Debt cannot be enforced during this period and interest can't be charged on it, the Debtor is still legally required to pay their liabilities which means that any tenants in debt, should continue to pay any debts owed.

A “breathing space” can be started by a debt advice provider, as long as they are authorised by the Financial Conduct Authority (FCA), or a local authority that provides debt advice to local residents.

For further reading visit the government website by following this link. https://www.gov.uk/government/publications/debt-respite-scheme-breathing-space-guidance/debt-respite-scheme-breathing-space-guidance-for-creditors

Jackson Property are proud sponsors and supporters of the Cart Shed who mains objective is to provide tailored therapeutic support in a woodland setting, helping those experiencing an imbalance in their lives to heal, learn new skills, find friendship and a future.  This new law will provide a shield for those most effected by debt during the pandemic and an opportunity to reflect in order address the problem and move forward.