Breathing Space & Liability

[mmmp3]

Good day everyone! will get right to the point...

Situation
Court case coming up soon; debt company bought overdraft debt from major UK bank and they are chasing me for this; I have never admitted liability or that I owe this and need some time to get legal help in terms of defending or at very least discussing a settlement that is affordable

Question
If I apply for breathing space (never done personally before) I understand I get 60 days to take care of affairs. This should delay/adjourn the court hearing but does it automatically mean that I admit liability in this case and I owe the debt? (total amount is 15k)

any help much appreciated

[R0b]

Hi

I've never heard of an application for breathing space, where did you get this information from? Once legal proceedings are instigated, there is a process to follow and you can ask for proceedings to be stayed but there needs to be a good justification for doing so.

[des8]

The Debt Respite Scheme, or Breathing Space is a free scheme, launched by the Government on 4 May 2021.

https://www.gov.uk/government/public...-for-creditors

[R0b]

Thanks Des, never knew this existed.

Going back to your point MMP3, it appears the Scheme can only be applied through a debt advice provider which is defined as someone who is authorised under the FCA to provide debt advice.

There's nothing in the legislation I can see that implies you are admitting the debt if you apply through the scheme but it does say that if you make an admission during legal proceedings before or after the moratorium period then the creditor is entitled to apply for judgment. I would take that as meaning you are not automatically deemed to have admitted as being liable for the debt.

I would suggest you get in touch with a debt advisor as soon as possible if you want to initiate this.

[mmmp3]

thanks to you both! yes already applied via business debt helpline (they have been quite helpful actually), but i put it on pause until i could clarify the above, i hope others become more aware about the breathing space initiative, can be used once a year I think and basically pauses all payments to creditors, possibly even court proceedings, etc for 60 days)