On Tuesday 4 May 2021, the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 came into force, which provides a temporary period of relief from creditors, to help individuals in England and Wales with debt problems. The Debt Respite Scheme prevents landlords from chasing unpaid debts, allowing tenants a “Breathing Space” to find a solution and bring their finances in order. Debts cannot be pursued if the individual is in a Debt Respite Period. This means no calls, texts, emails or reminders in relation to the outstanding debt and the landlord cannot charge interest on money owed.
Standard Breathing Space
Any tenant with a debt problem may apply for the Standard Breathing Space and will protect the tenant for up to 60 days. A Section 8 notice cannot be issued for Grounds 8, 10 or 11 (Rent Arrears) but can be issued for other grounds. This applies even in the case of joint tenants. The landlord cannot charge interest on money owed.
Mental Health Crisis Breathing Space
A tenant undergoing treatment for a mental health crisis may last for as long as the tenant is undergoing treatment in addition to 30 days. A Section 8 notice cannot be issued for Grounds 8, 10 or 11 (Rent Arrears) but can be issued for other grounds.
Read our full update on section 8 notices.
