Debtors to enjoy more protection from Enforcement Action by Creditors from 2021?

As part of a raft of new proposals published by the government in the hope of sealing a legacy for Theresa May prior to her departure as Prime Minister, and perhaps in the hope of stealing the initiative from Jeremy Corbyn with regard to policies centring around social responsibility, ministers have recently announced proposals for a new scheme, planned to be introduced in 2021, which will allow an individual with pressing creditors who agrees to seek advice from a professional debt advisor and to accept a plan to resume payments to their creditors in due course, to enjoy up to 60 days protection from enforcement action, bailiffs etc.

It appears likely that a longer period of protection will be available to individuals suffering mental illness. However, it is not yet clear what will constitute mental illness.

It is understood that this protection is also likely to extend to arrears of council tax, but it is unclear whether the protection will include indebtedness to HMRC for personal and business taxes and what HMRC’s reaction to these proposals will be.

It is also a key feature for the protection of the public and business that careful thought is given to which individuals and bodies will be deemed to be professional debt advisors.

Should you wish to further clarify these proposals, or indeed obtain advice regarding current protection from creditors which is available to individuals or companies, please contact Chamberlain & Co on 0113 2420808 or at advice@chamberlain-co.co.uk.