Debt Respite Scheme For Creditors
1. Your responsibilities
1.2 Debt advice providers
1.3 The Insolvency Service
2. Starting a breathing space
2.1 Applying for a standard breathing space
2.2 Applying for a mental health crisis breathing space
2.3 Debtor eligibility for a standard breathing space
2.4 Debtor eligibility for a mental health crisis breathing space
2.5 Information the debt adviser needs
2.6 Qualifying debts
2.7 Excluded debts
2.8 Request to not disclose debtor’s address
2.9 When a breathing space starts
3. What to do during a breathing space
3.1 Taking action on the notification
3.2 If you have sold the debt on
3.3 Debts identified after a breathing space starts
3.4 Stopping enforcement action
3.5 Appointed agents
3.6 Existing legal proceedings
If you had already filed a petition for bankruptcy or started any other action in a court or tribunal relating to a debt that is now in breathing space, you must tell the court or tribunal in writing. You must do this as soon as you receive notification of the breathing space.
3.7 Where a court judgment or order has not yet been issued
Any court that receives notification about a breathing space debt where a bankruptcy petition has started, must stop the bankruptcy proceedings, until the breathing space ends or is cancelled. Other court proceedings about the debt (other than enforcement of court judgments or orders) can continue until the court or tribunal makes an order or judgment.
3.8 Where a court judgment or order has been issued
3.9 Contact between creditors and debtors during a breathing space
3.10 Contact between creditors and debt advisers during breathing space
3.11 Creditor access to the breathing space register
3.12 Receiving payments during a breathing space
3.13 Ongoing liabilities during a standard breathing space
3.14 If a debtor does not pay ongoing liabilities during a standard breathing space
Where a debtor does not pay an ongoing liability, the debt adviser might decide to cancel the standard breathing space. The debt adviser will consider whether cancelling it is unfair or unreasonable to the debtor. This can be done as part of the midway review process. This obligation and review process does not apply to debtors during a mental health crisis breathing space.
3.15 Debt adviser midway review during a standard breathing space
3.16 Cancelling a standard breathing space
3.17 Cancelling a mental health crisis breathing space
3.18 Request a breathing space review
3.19 Breathing space cancelled after creditor review
If a debt adviser decides to cancel a breathing space after a creditor request for a review, they will update the electronic service to tell the Insolvency Service it has been cancelled. You’ll receive a notification that the breathing space has been cancelled, and whether this is for some or all of the debts. After you have received this notification, you can restart enforcement action and charges. You cannot backdate any interest or fees accrued during the breathing space period, unless a court lets you.
3.20 Breathing space not cancelled after creditor review
If the debt adviser decides not to cancel the breathing space, they will tell you about this decision. The breathing space continues, but you can take further action by applying to a court, if you still do not agree.
3.21 Apply to court to cancel a breathing space
3.22 If you do not comply
4. End of a breathing space
4.1 When a standard breathing space ends
4.2 When a mental health crisis breathing space ends
A mental health crisis breathing space will end either 30 days after the debtor’s mental health crisis treatment ended, or 30 days after the date a debt adviser had no response after asking for confirmation from the nominated point of contact about a debtor’s ongoing mental health crisis treatment.
4.3 End of a breathing space notification
When a breathing space ends, you will be sent a notification. It will tell you the date the breathing space ended. If the breathing space was cancelled by the debt adviser or the court, or the debtor has died during the breathing space period, the notification will tell you the reason why it was cancelled.