Introduced on 4th May, the new Debt Respite Scheme, also known as ‘Breathing Space’, could have a significant impact on residential landlords considering possession proceedings to recoup rent arrears. So, what do registered providers (RPs) need to be aware of and what steps must they now take when considering bringing legal proceedings against tenants?
Implemented to give those facing debt problems protection from their creditors, the Debt Respite Scheme includes two types of Breathing Spaces; Standard Breathing Space and Mental Health Crisis Breathing Space. Standard Breathing Space is available to anyone with problem debt and provides an individual with legal protection from creditor action for up to 60 days. This includes most enforcement action being paused, the prevention of contact from creditors and the freezing of most interest charges on the debt.
The Mental Health Crisis Breathing Space is only available to a person receiving mental health crisis treatment, with protection lasting as long as the individual’s treatment lasts, plus 30 days after their treatment ends.