A new Government scheme to help people in debt access high quality advice could be a lifeline to thousands in Wales, says insolvency trade body R3’s Wales branch.
The breathing space scheme came into effect last week and gives anyone who cannot pay their debts a period of time of 60 days in which they can speak to a debt advisor, while all communications from lenders, and all interest and charges on the debts covered by the scheme, are paused.
People in debt who are receiving medical treatment for a mental health issue are automatically eligible for the scheme, which lasts for the duration of their treatment, plus 30 days.
The Westminster Government has estimated that 700,000 people in Wales and England could take advantage of the scheme in its first 12 months.
Philip Winterborne, chair of insolvency trade body R3 in Wales and a Partner at Temple Bright LLP, comments:
“The introduction of the breathing space scheme comes not a moment too soon. The pandemic has dealt a body blow to many people’s incomes and savings, and this policy could make a real difference in helping individuals to find the best way of resolving their financial situation.
“In our view, the scheme does a good job of balancing the needs of people in debt with the rights of their creditors, and it has been set up in such a way that the scheme is rightly part of a journey, rather than a destination in and of itself.
“The breathing space scheme has the potential to help many thousands of people who have well-founded worries about their finances, and who need time and guidance to assess their position, speak to an advisor, and plot a path forwards.
“We hope the scheme gets good take-up, and that it provides a measure of relief and direction to all who need it.”
This Article firstly Publish on businessnewswales.com