Lexis®Library update: The updated guidance includes a new section on the Debt Respite Scheme and advice on informing the court that a debt is in a breathing space. The updated guidance also notes that it is not possible to use the Money Claim Online website to issue any new claim, enter judgment by default, or request a warrant against a defendant or anyone who is jointly liable with them while any of them are in a breathing space. Further information on what happens after a warrant has been requested is also included in the guidance. In particular, it is noted that if the defendant enters a breathing space, claimants must notify the defendant’s local court in writing to ensure the bailiff is immediately informed of the breathing space. Notification can be sent to dedicated email inboxes in local courts.
The Debt Respite Scheme (Breathing Space) gives individuals in problem debt the right to legal protections from their creditors. HMCTS explained that if a creditor is told that a debt owed to them is in a breathing space, they must stop all action related to that debt and apply the legal protections. These protections stay in place until the breathing space ends.
The updated guide is available here.
Source: Money Claim Online user guide
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 29 April 2021 and is published with permission. Further information can be found at: www.lexisnexis.co.uk.
