Breathing Space

Breathing Space It is a support scheme set up by the government to help people struggling with debt. You can apply for a breathing space period which typically lasts for 60 days i.e., where it is a standard breathing space.

There is another form of breathing space for those who are suffering from a mental health crisis and are receiving treatment for it. In both instances, the breathing space is a temporary measure whereby borrowers can get protection from creditor enforcement, such as by freezing interest and charges during the breathing space.

For those who wish to apply, they must work with a professional debt adviser who must be authorised by the Financial Conduct Authority (FCA). The debt adviser will determine whether a breathing space is suitable and if so, an application is made on your behalf. The respite scheme is only for a temporary period, your debts do not go away at the end of it – that problem will still need to be dealt with.

Following the start of a standard breathing space, you must then review debt solutions or continue with setting up a debt solution where one was identified beforehand. Those subject to a mental health breathing space are not obligated to do this.

Speak to a debt solution specialist on 0161 823 4974 or complete the form to book a call back.

You may be eligible if:

• You live in England or Wales
• You owe at least one qualifying debt to a creditor
• You are unable to repay your debts as they fall due
• You are not currently in a formal insolvency procedure (bankruptcy, IVA, DRO)
• You have not had a standard Breathing Space in the last 12 months

Note: Mental health crisis Breathing Space has different eligibility rules and can be used multiple times per year if needed.

During your Breathing Space period, you receive legal protection from your creditors:

• Interest and charges frozen – All interest, fees, and charges on included debts stop accumulating
• Enforcement action stopped – Creditors cannot take legal action or use bailiffs to recover debts
• No creditor contact – Creditors cannot contact you to chase payment on protected debts
• Court proceedings paused – Existing court cases are paused and no new ones can be started
• Attachment of earnings stopped – Deductions from wages for debts are suspended

Standard Breathing Space (60 days)

The standard scheme lasts for 60 days and is designed to give you time to get debt advice and work towards a debt solution.

Your obligations during standard Breathing Space:

• Work with your debt adviser to find a long-term debt solution
• Attend appointments and respond to your adviser’s requests
• Pay all ongoing bills and debts not included in the scheme
• Not take on any new credit over £500 without informing your adviser

Mental Health Crisis Breathing Space

This provides enhanced protection for people receiving mental health crisis treatment. It lasts for the duration of your treatment plus 30 days.

Key differences:

• Can last longer than 60 days depending on treatment duration
• No obligation to seek debt advice or work toward a solution during this time
• Can be used multiple times within 12 months if needed
• Requires evidence from an Approved Mental Health Professional

Breathing Space is not a payment holiday. To maintain your protection, you must:

• Continue paying ongoing bills – rent, council tax, utilities, and other household expenses
• Pay debts not in the scheme – such as mortgages, car finance, and other excluded debts
• Engage with your debt adviser – attend appointments and respond to communications
• Avoid taking new credit – inform your adviser before borrowing more than £500
• Be honest – provide accurate information about your debts and circumstances

Breathing Space is a temporary measure designed to give you breathing room to address your debt problems. It does not make your debts disappear.

When your Breathing Space ends:

• Creditor protections end and normal enforcement can resume
• Interest and charges start accumulating again
• You’ll need to begin repaying your debts or enter a formal debt solution

Working toward a solution:

During your Breathing Space period, you should work with your debt adviser to explore long-term solutions such as:

• Debt Management Plan (DMP)
• Individual Voluntary Arrangement (IVA)
• Debt Relief Order (DRO)
• Bankruptcy
• Informal arrangements with creditors

That’s where we can help. Once you’ve completed your Breathing Space and chosen the right debt solution, our specialist advisers can guide you through the implementation process and support you on your journey to becoming debt-free.

Need help understanding your options? Speak to our debt solution specialists on 0161 823 4974 or complete our form to book a call back.