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Potential lack of knowledge of Debt Respite Scheme for Mental Health amongst professionals and secondary lenders

We have published several articles on the mutual impact of financial stress and mental health (**articles listed below), but there does appear to be some lack of awareness amongst some creditors chasing a personal guarantee debt and some of the professionals acting on their behalf of the Debt Respite Scheme for Mental Health that was introduced by the government in May 2021.

The register of persons who are under such a scheme is maintained by the Insolvency Service and provides a formal process for assessment by registered Mental Health Professionals before someone can be registered under the scheme. Many creditors of course had already become sensitive to mental health issues, and certainly this is a marked improvement on that which existed after the 2008 crash, whereby the best one could hope for is a referral to a GP who would just write a sick note for 4 weeks off work and prescribe a bunch of pills.

The significance of this process cannot be underestimated; our business has witnessed the harrowing experience of a number of individual suicides from 2008-2012 due to their loss of business, personal guarantee claims and income loss and all that brought with it, it is with a great sense of relief that we have now been able to refer individuals to this process who are in need of it.

By way of example, one person called us on a Friday lunchtime and said due to the pressures of losing his business and the financial duress that caused including being pursued on a PG and stated that he would not be going home to his family. Having strongly recommended he called the Critical Mental Health helpline, he text us early the following week to thank us for that referral, no one had offered him that assistance before, not even his GP, and that the helpline were so concerned for his mental health they had sent an ambulance to him which probably saved his life.

For creditors and their professional advisors, you can find out more about the scheme at:- 

Debt respite scheme (breathing space): Guidance on mental health crisis breathing space


Debt Respite Scheme (Breathing Space) guidance for creditors

If you are an individual and you believe you are suffering from a Critical Mental Health Issue, you can get help here:

Where to get urgent help for mental health

AND you can find out more information at Rethink Mental Illness :

** Previous articles

Mental Health Awareness and Financial Wellbeing (23/05/2022)

If you cannot cope and/or are having suicidal thoughts … (02/09/2021)

Personal Guarantee Claims and Mental Health (28/06/2021)

Debt Respite Scheme (Breathing Space) (18/06/2021)



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