Due to be introduced in May 2021, the new Debt Respite Scheme is designed to give those individuals facing financial difficulties a breathing space from their creditors, providing they have sought professional advice.
Individuals will be protected during a 60 day moratorium window which protects them from most creditors taking legal action. During the moratorium, interest, fees and charges in relation to the debt are frozen and any enforcement action is paused.
Given the impact Covid is having on personal debt levels the new moratorium gives individuals much needed breathing space. Creditors will find it difficult to pursue their claims against individuals and the worry is that while they cannot use formal means, they may turn to informal means to get their debt paid.
For advice on personal or corporate insolvency procedures please call Stella on 01377 257788 (Driffield), 01904 520116 (York) or 01724 230060 (Scunthorpe) and she will make you an appointment with one of our insolvency professionals. Initial meetings are free and can be held virtually or in any of our offices whilst observing the distancing guidelines.