On 13 May 2022, HM Treasury issued a consultation on a new form of statutory debt solution, the statutory debt repayment plan (SDRP), that will allow for most of an individual’s debts to be combined into a single plan and repaid over a manageable period, with similar legal protections from creditor action as in breathing space.
The SDRP will apply in England and Wales. Scotland already has its own debt respite scheme, the Debt Arrangement Scheme. Northern Ireland is considering its approach to a devolved debt respite scheme. The SDRP will be accessible only via professional, FCA regulated debt advice, or through a local authority, so the SDRP caseload will be a sub-set of the number of people who receive debt advice in England and Wales.
HM Treasury has also published a draft of The Debt Respite Scheme (Statutory Debt Repayment Plan etc.) (England and Wales) Regulations 2022. This statutory instrument makes provision for SDRPs.
The deadline for comments on the consultation is 5 August 2022.