Lee Ranford assesses the challenges of the Breathing Space process for creditors.
At first glance, the introduction of the ‘Breathing Space’ process, which provides protection to individual debtors from enforcement action by their creditors, may appear to have limited impact. However, the lack of financial limit on the size of debts covered and the wide range of the type of debts covered suggests the process could have wider significance. Those matters perhaps explain the popularity of the Breathing Space process since its introduction on 4 May 2021, with 36,931 registrations for Breathing Space at the end of November 2021.
In the current economic climate, the Breathing Space process is likely to have significant use, with many debtors and their creditors being impacted by this process. This article ...