Government Announces 2024 Will Be When Those Coming Out of “Breathing Space” Can Take a Statutory Debt Repayment Plan to Stop Further Interest, Charges and Enforcement Action

MPs returned to the House of Commons yesterday to discuss the unfolding situation in Afghanistan, however an update on the Gov website reveals it will be 2024 when a change to the Debt Respite Scheme will be coming into play which will offer an alternative solution to people worried about having to go bankrupt to get rid of debts they cannot afford to service.

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It is something that StepChange has been pushing for, however that update may be of interest to many of you who may be struggling with loans and other debts right now and want an option other than having to go bankrupt.

You will find more on the Breathing Space initiative on the following links:

Debt Respite Scheme (Breathing Space) Guidance for Money Advisers Updated 23 April 2021:

Debt Respite Scheme (Breathing Space) Guidance for Money Advisers Updated 23 April 2021

Debt Respite Scheme (Breathing Space) Guidance for Money Advisers Updated 23 April 2021

Debt Respite Scheme (Breathing Space) Guidance for Creditors Updated 23 April 2021

The Government website update states the following:

Statutory Debt Repayment Plan: A new payment solution due to be available in 2024. This is not covered by this equality impact assessment. The updated page can be found on the following link:

https://www.gov.uk/government/publications/debt-respite-scheme-breathing-space/debt-respite-scheme-breathing-space-initial-equality-impact-assessment

This is what StepChange have to say:

The Breathing Space scheme is the first piece in the jigsaw of protections for people in problem debt that we have campaigned for.

It will be followed in the coming years by the introduction of Statutory Debt Repayment Plans, which will give people coming out of Breathing Space the chance to affordably pay off their debts while remaining exempt from further interest, charges, and enforcement action.

We’re going to continue to work with the Treasury in the coming months as it progresses plans for this additional guarantee of protection, which will give people further space to recover from serious debt problems.