Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what recent steps his Department have taken to ensure businesses adhere to creditors' responsibilities when debtors are under a Debt respite breathing space period.

A breathing space gives individuals the right to legal protections from creditor action to recover debts included in the agreement. If a creditor does not comply, the regulations set out that the debt adviser responsible for the application can contact the creditor to remind them of their obligations or ultimately notify the Insolvency Service, as the scheme’s administrator, to require their compliance. Notifications to the Insolvency Service are very rare. If non-compliance persists, action taken by a creditor is invalid and they may be liable for the debtor’s costs. Repeated breaches can be considered by the creditor’s regulator, where appropriate.