Breathing Space
Breathing Space, also known as the Debt Respite Scheme, is a legally enforced scheme that gives you time to get professional debt advice. While it is in place, your creditors cannot chase the debts.
There are two types of Breathing Space:
| Standard Breathing Space | Mental Health Crisis Breathing Space | |
|---|---|---|
| How long it lasts | Up to 60 days | For as long as your crisis treatment lasts, plus 30 days |
| Who it’s for | Anyone in England or Wales struggling with a qualifying debt | Someone receiving mental health crisis treatment |
| How often | No more than once a year | No limit |
| Cost | Free | Free |
Standard Breathing Space
Gives you legal protection from creditor action for up to 60 days. Most enforcement action and contact from creditors is paused, and most interest and charges are frozen.
Who is eligible?
An individual with a qualifying debt who meets these criteria:
- You live in England or Wales.
- You are struggling, or about to start struggling, to keep up payments.
- You have at least one qualifying debt, such as credit cards, loans, overdrafts, payday loans or catalogues. Arrears on rent, mortgage, utilities and council tax also qualify, but you must keep up the ongoing payments; only the arrears are included.
- You don’t have the means to clear your debts, e.g. ISAs or assets that could be sold.
- You are not in a Debt Relief Order or an Individual Voluntary Arrangement, and are not an undischarged bankrupt.
- You haven’t had a Breathing Space in the last 12 months.
What are the conditions?
- You must engage with your adviser throughout the Breathing Space.
- You must keep paying some ongoing liabilities, such as your priority bills.
- You must not take out additional credit over £500.
How often can you apply?
No more than once a year.
Mental Health Crisis Breathing Space
Only available to someone receiving mental health crisis treatment, and it has stronger protections. It lasts as long as the crisis treatment, plus 30 days, however long the treatment lasts.
Who is eligible?
Someone with a qualifying debt who meets the eligibility criteria and is receiving mental health crisis treatment.
- Must have a qualifying debt.
- Must be receiving mental health crisis treatment.
What are the conditions?
A nominated point of contact must engage with the debt adviser.
How often can you apply?
There is no limit.
Is Breathing Space suitable for me?
If you are struggling, or about to start struggling, with problem debt and need time to get debt advice and consider your options, Breathing Space could be for you.
Breathing Space benefits
There are no charges or fees to apply for, or be granted, a Breathing Space.
Creditors are stopped from taking most types of enforcement action or adding fees and charges, as long as you meet the conditions. (There are no conditions to meet in a Mental Health Crisis Breathing Space.)
You get the time to take advice from regulated organisations experienced in helping with problem debt.
Creditors cannot start or continue any action during the Breathing Space period.
Breathing Space considerations
Standard Breathing Space has conditions. If they are not kept to, your Breathing Space can be cancelled. You must:
- Engage with debt advice.
- Report any change in your circumstances.
- Pay certain ongoing liabilities, if you can afford to.
- Not take out additional credit over £500.
How we can help
We don’t offer Breathing Space directly, but we can tell you whether it or another solution best suits your situation. If Breathing Space is right for you, we will refer you accordingly.