Breathing Space Scheme
The Breathing Space Scheme, formally known as the Debt Respite Scheme, offers temporary protection from most creditor action while you receive professional debt advice.
If you are struggling with debt, Breathing Space can provide time to seek help without the pressure of increasing interest, charges or enforcement action.
What Is Breathing Space?
Breathing Space is a government-backed scheme that gives eligible people legal protection from most creditor action relating to qualifying debts.
A standard Breathing Space lasts for 60 days.
During this period, most creditors must:
- Stop contacting you about the debt.
- Stop enforcement action relating to the debt.
- Pause interest, fees and charges on the debt.
- Stop adding further default charges.
Breathing Space is designed to give you time to work with a debt advisor and explore long-term solutions.
Who Can Apply?
To access Breathing Space, you must:
- Live in England or Wales.
- Be struggling with problem debt.
- Receive advice from an authorised debt advice provider.
You cannot apply directly yourself. A qualified debt advisor must assess your situation and submit the application on your behalf.
Which Debts Can Be Included?
Many debts can be included, including:
- Credit card debts
- Personal loans
- Overdrafts
- Council Tax arrears
- Rent arrears
- Utility arrears
- Benefit overpayments
- Store cards
- Catalogue debts
What Debts Are Usually Excluded?
Breathing Space generally does not cover:
- Ongoing household bills that become due during the Breathing Space period.
- Child maintenance payments.
- Criminal fines.
- Student loans.
- Certain debts arising from court orders.
Your advisor will explain any exclusions that apply to your circumstances.
What Happens During Breathing Space?
While Breathing Space is in place, you should:
- Continue paying ongoing liabilities where possible.
- Keep in contact with your debt advisor.
- Provide any information requested.
- Consider the options available for managing your debts long term.
The protection is temporary and is intended to help you make informed decisions about your finances.
Mental Health Crisis Breathing Space
A separate form of Breathing Space is available for people receiving recognised mental health crisis treatment.
This protection:
- Lasts for the duration of the crisis treatment.
- Continues for an additional period after treatment ends.
- Offers many of the same protections as standard Breathing Space.
A mental health professional must confirm eligibility before this type of protection can be applied.
What Happens When Breathing Space Ends?
At the end of the Breathing Space period:
- Interest and charges may resume where applicable.
- Creditors may restart recovery action.
- Any agreed debt solution can continue.
Your debt advisor will discuss the most appropriate next steps before the protection period ends.
Is Breathing Space Right For Me?
Breathing Space may be suitable if:
- You are struggling to manage your debts.
- Creditor pressure is affecting your wellbeing.
- You need time to understand your options.
- You are seeking professional debt advice.
It is not a debt solution in itself, but it can provide valuable time to consider the most appropriate way forward.
Need Help?
Our advisors can help you:
- Understand whether Breathing Space is suitable for you.
- Review your income, expenditure and debts.
- Explore all available debt solutions.
- Check whether you are entitled to additional financial support.
- Access free, confidential debt advice.
Contact our team today to discuss your options and take the first step towards managing your debts.