Breathing Space 20 day challenge

Hawjim

Hi all,

Does anyone have any experience of a creditor challenging their breathing space application within the first 20 days?  I am considering breathing space and wondered if anyone has faced this challenge or what reasons are their for them to challenge?

Many thanks.

sourcrates

What is significant about the first 20 days ? breathing space lasts for  60 days, there is no real recourse to challenge breathing space, as its a Government backed scheme.

To be honest breathing space is a waste of time, as they still require you to keep up with repayments if you can, it could have been so much better, but was watered down far too much.

Six months would have been more appropriate.

In the real world, if you are struggling to keep up repayments, the first 6-9 months of debt collection activity only consists of the odd letter and a few phone calls, if you can handle that, you don`t need to worry about the official scheme, it only lasts 60 days anyway, in debt collection terms, that`s just a drop in the ocean.

Hawjim

Thank you sourcrates - I love reading your replies!  Thank you for replying to mine.  I only mentioned 20 days, as on stepchange website it said that creditors can challenge your breathing space application. Thanks. 

fatbelly

With normal breathing space there has to be a midpoint review between days 25-35.

If creditors want the adviser to cancel the BS, they must notify them by day 20 that one of the following applies:

• the breathing space unfairly prejudices your interests. For example, you think that there has been discriminatory treatment in respect of you, or your debt
• the debtor does not meet at least one of the eligibility criteria for a breathing space
• any of the debts included in the breathing space do not qualify
• the debtor has enough funds to repay their debts

This will then be considered as part of the midpoint review. Frankly by the time this is sorted out, the 60 days will be over. Except in very specialised cases BS isn't worth bothering with. It's based on a misunderstanding about the debt process, as sourcrates explains

Hawjim

Thank you fatbelly and sourcrates.  Do either of you know if StepChange are no longer approved to support in the DRO process?  I have been advised by them to either go through Citizens Advice or Money Wellness?