A statutory debt respite scheme to protect struggling borrowers from enforcement action is being considered by the government.
The “breathing space” scheme, already operating in England, Wales and Scotland, would give debtors a pause from creditor action while they seek professional advice and arrange repayment plans.
The report highlights significant challenges to implementation, including the need for bankruptcy law reform and the creation of new statutory roles.
Treasury estimates that if uptake mirrored England and Wales, approximately 124 people annually would benefit from a standard breathing space scheme, with around two benefiting from mental health protections.
The OFT said: “The six months’ timescale was perhaps a more realistic amount of time needed for a debtor to get their finances back in order.”
No immediate introduction is planned, with the matter to be considered alongside broader bankruptcy and coroners’ law reform.