Our thoughts on the Debt Respite Scheme

11 May 2021

On the 4th May 2021, the government launched the long-anticipated Debt Respite Scheme, branded as ‘Breathing Space’, allowing those in problem debt to have 60 days to seek advice or take steps to deal with their debts without further interest or charges being levied, and crucially creditors cannot take enforcement action against debtors in the scheme.

Further information for those in debt can be found on the Stepchange website;


Information on what this means for creditors can be found on the government guidance page;


This is excellent news for all those that have found themselves in problem debt over the last year. It provides time to those who are insolvent to seek debt advice and devise a manageable solution to their financial issues. However, it should be noted that the scheme does not provide a payment holiday, and those that can afford to maintain their repayments ought to.

Hamish Millen Adam, one of our senior partners with over 30 years’ experience, had this to say on the development;

“The Debt Respite Scheme which came into effect on 4 May 2021 provides a breathing space for all persons with debt problems including those with mental health issues. It will allow individuals the time to consider their options with an Insolvency Practitioner or a Debt Adviser but whether the scheme will be a success depends on how well known it becomes and whether individuals take sensible steps whilst they have protection. It provides useful protection for 60 days and longer where there are mental health issues to consider appropriate solutions in an orderly manner. Only time will tell whether the Schemes will be widely accessed.”

Looking for debt advice? Give us a call on 01752 690101 or email at info@richardjsmith.com for a free and impartial consultation.

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