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Breathing Space plans to be extended


Opinion


CCJs against businesses fall 20% in fourth quarter


There was a 20% drop year-on-year in the number of county court judgments (CCJ) registered against businesses in England and Wales in the fourth quarter of 2019, according to our figures. The total number of judgments against all


businesses decreased from 29,303 in the fourth quarter of 2018 to 23,418 in the same period of 2019, and was accompanied by a 21% drop in the total value of judgments from £117,546,664 in 2018, to £92,311,503 in 2019. The fall in business CCJs largely affected


Government’s new breathing space period will freeze interest, fees and enforcement for people in problem debt, with protections for those in mental-health crisis treatment A 60-day breathing space period will see


enforcement action from creditors halted and interest frozen for people with problem debt. In this period, individuals will receive professional debt advice to find a long-term solution to their financial difficulties. As well as this, those receiving mental-


health crisis treatment will receive the same protections until their treatment is complete. The impact assessment for breathing


space, published last month, forecasts that it will help over 700,000 people across the UK get professional help in its first year, increasing up to 1.2 million a year by the tenth year of operation. Of this, 25,000 to 50,000 people in mental-


health crisis treatment are expected to benefit from breathing space every year. Economic secretary to the Treasury, John


Glen, said: “Being trapped in debt can be an incredibly difficult experience, and with interest and potential enforcement action to contend with, it is no surprise how stressful the impact can be. “Our figures underline just how critical it is


that we roll out this policy, where we should all work to reduce the stigma of mental- health issues.


February 2020 “That is why we will introduce breathing


space in early 2021 as planned, so we can level up the whole country and help millions of people to rid themselves of problem debt.” Mark Sands, chair of R3’s Personal


Insolvency Committee, said: “The breathing space scheme is something that we have campaigned for and supported for many years. Giving people in debt time to talk over their options with a professional advisor will help them to choose the right way forward for them, without additional stress or pressure. “The government’s prediction that many


hundreds of thousands of people will benefit from the scheme in its first year shows the crying need for breathing space, and we eagerly await more detail on its introduction date and how it will be implemented.” Fiona Hoyle, the head of consumer and


mortgage finance at the Finance & Leasing Association, said: “The announcement by the government of a statutory 60-day breathing space will extend to those with council tax and utility debts the same type of protection that has been available to consumer credit customers for some years under the FCA’s very successful Breathing Space scheme. “The challenge now is for government,


the FCA and the consumer credit industry to work out how the two schemes can coexist without creating confusion for consumers or expensive duplication for lenders.”


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incorporated businesses. The numbers fell by 27%, from 21,373 to 15,626. Judgments against incorporated businesses account for 67% of all business judgment numbers and 74% of their total value. Despite large decreases in number and


total value, the average value fell by just 2% and median value actually rose by 40%, with smaller judgments down 10% and larger judgments up 10% compared to the fourth quarter of 2018. In the High Court of England and Wales,


judgments against businesses rose 80%, from 15 High Court judgments in the fourth quarter of 2018 to 27 in 2019. The total value of High Court judgments against businesses


rose 62% from


£4,655,373 in 2018 to £7,545,465 in 2019. The average and median values dropped 10% and 87% respectively due to an increase in smaller value judgments in the High Courts. Meanwhile, the number of CCJs issued against consumers


increased slightly


compared to the same period last year. But, the value of judgments saw a significant increase of 17%. The total value of consumer judgments hit


£458,291,002 the quarter. The average value saw an increase of 16%, reaching £1,705.


Mick McAteer Chairman, Registry Trust


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