The long awaiting details of the government's proposals to introduce an extended breathing space and a statutory debt repayment plan scheme in England and Wales have been unveiled following the recent budget announcement by the Chancellor of the Exchequer, Philip Hammond.
The consultation has three sections.
Chapters two to four provide an overview of the breathing space scheme and chapters five to seven focus on debt repayment plans. Both propose the eligibility criteria for entering the protections, and describe details of these protections.
Chapter eight of the document outlines the government’s proposals for the administration of both breathing space and the plan, including how they will be funded, as well as the policies’ territorial extent.
This consultation runs from 29 October 2018 to 29 January 2019 after which final details of the scheme and implementation expectations will be made clear.
The implementation of a breathing space and a statutory debt repayment plan (‘the plan’) was a 2017 manifesto commitment. It aims to give people in problem debt the opportunity to take control of their finances and put them on a sustainable footing. Breathing space would give someone in problem debt the right to legal protections from creditor action while they receive debt advice and enter an appropriate debt solution. The plan would enable someone in problem debt to enter a statutory agreement to repay their debts to a manageable timetable. Individuals entering a plan would receive legal protections from creditor action for the duration of their plan.
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