The Board considered a report of the Strategic Director Enterprise, Community and Resources, which provided information on the Breathing Space process which came into effect on 4th May 2021. It provides Council debtors with legal protections to ensure that creditors pause recovery and enforcement action for a period of up to 60 days.
There were two types of breathing space: a standard breathing space and a mental health crisis breathing space.
A standard breathing space is available to anyone with problem debt. It provided legal protections from creditor action for up to 60 days. The protections include pausing most enforcement action and contact from creditors and freezing most interest and charges on their debts.
A mental health crisis breathing space was only available to someone who received mental health crisis treatment and it had some stronger protections. It lasts as long as the person’s mental health crisis treatment, plus 30 days (no matter how long the crisis treatment lasts).
Members noted information on:
· Debt-advice providers;
· The insolvency service;
· Applying for a standard breathing space and eligibility;
· Applying for a mental health crisis breathing space and eligibility;
· Qualifying and excluded debts; and
· The Councils role throughout the process and the next steps when a breathing space end.
RESOLVED: That the report be noted.