From Tuesday 4 May, The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 has come into force, this scheme provides a temporary period of relief from creditors for individuals in England and Wales to help those with problem debt.
Any person who is in debt can seek a moratorium from an approved debt advice provider. This debt can include rent arrears.
Types of breathing space a tenant may enter:
- Standard breathing space - lasts for a maximum of 60 days
- Mental health crisis breathing space - ends 30 days after treatment finishes
Once a Breathing Space has started, no enforcement action can take place against the debtor or anyone who is jointly liable with them for a Breathing Space debt. This means that if a tenant enters a breathing space, legally we cannot pursue them for rent if they don't pay and therefore enter arrears. This does not mean they will not be liable for the rent, it just means we cannot pursue them until the breathing space ends.