CCH – 60 Day Breathing Space

As many of you may recall, in 2018 creditors were dealt a blow by the Government in the form the of Pre-Action Protocol for Debt Claims which meant that debtors, including individuals and sole traders, would be granted with a 30 day period whereby no action could be taken against them. This period was extendable by a further 30 days if the debtor requested more information, documents or if they were consulting a debt charity.

On 4 May 2021, creditors will be dealt another blow in the form of a government scheme whereby consumer debtors in problem debt would receive, automatically, a 60 Day Breathing Space which means that creditors can no longer pursue these individuals after a month has passed. In reality, this may mean that monies are outstanding for 3+ months before any action is taken, when taking into account many creditor's internal collection efforts or policies.