This debt respite scheme (officially known as the Breathing Space Moratorium and Mental Health Crisis Moratorium) is designed to help people by providing advice to those who have fallen into debt.
Additionally, they will be provided with certain legal protection from creditors for 60 days, whereby creditors will be required to suspend debt recovery actions.
These new rules will impact a number of financial obligations but the Ministry of Housing, Communities & Local Government recently wrote to local authorities explaining how the rules will impact council tax specifically.
As the letter detailed: “As you will probably be aware, a new statutory breathing space scheme, introducing the breathing space moratorium and mental health crisis moratorium, will commence on May 4 2021.
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