By Mr Bankruptcy
19th May 2020
Do you jump when your phone rings? Do you dread opening the mail or reading your e-mails? If you’re being chased by creditors, these can trigger a real sense of dread because you’re worried they contain demands or reminders for payment. The current situation has made this feeling even more acute for many small and medium business owners.
However, there are ways you can temporarily stop being chased for debt payment and give yourself some “breathing space” during which you can sort out your finances.
A breathing space to review your debt situation
Reasonable creditors and debt collectors will want to support you in finding ways to repay your debt. One way they may be willing to assist you is by agreeing to stop contacting you for a short period while you consider your debt management options. This period, normally 30 days, is referred to as “breathing space”.
Although 30 days may not seem like a long time it may be enough to take these steps:
You must contact creditors to agree this breathing space but during this time most letters and calls demanding payment will stop.
However, don’t forget that interest charges on debts may continue and while breathing space is included in industry codes of practice, some creditors may not follow them. However, during the coronavirus pandemic, lenders are trying particularly hard to support you so now is a good time to approach them.
“Breathing Space” is to be extended in 2021
The benefits of allowing “breathing space” are widely recognised, so the Government has announced plans to launch an enhanced “Breathing Space” period in early 2021.
This will last for 60 days and even interest, fees and enforcement will be frozen during this period. It also provides further protections for people undergoing mental health crisis treatment.
You DO have options
During a breathing space period, if you wish to seek debt advice, James Rosa Associates can advise on your debt management options, helping you to understand how each may impact your situation and support you in resuming conversations with your creditors.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you need to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email email@example.com to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.