Credit & Debt Guides UK — Get Out of Debt, Build Credit, Take Control
Breathing Space Debt Respite Scheme UK: 60-Day Protection from Creditors
How to use the Breathing Space scheme in England and Wales to stop creditor contact and freeze interest for 60 days while you find a debt solution. Includes eligibility and how to apply.
Breathing Space gives people in debt legal protection from their creditors for 60 days while they get advice and find a solution. During this time, interest and charges are frozen and enforcement action is paused. The scheme started in May 2021 and applies in England and Wales.
What Breathing Space Does
| Protection |
Standard Breathing Space |
Mental Health Crisis Breathing Space |
| Duration |
60 days |
Duration of crisis treatment + 30 days |
| Interest frozen |
✓ |
✓ |
| Charges frozen |
✓ |
✓ |
| Creditor contact stopped |
✓ |
✓ |
| Enforcement paused |
✓ |
✓ |
| County Court action paused |
✓ |
✓ |
| Bailiff action paused |
✓ |
✓ |
| Bankruptcy petitions paused |
✓ |
✓ |
Two Types of Breathing Space
Standard Breathing Space
For anyone struggling with debt who needs time to find a solution.
| Feature |
Detail |
| Duration |
60 days exactly |
| How to access |
Through debt advice provider |
| Frequency |
Once per 12 months |
| Requirements |
In debt, not already in insolvency |
Mental Health Crisis Breathing Space
For people receiving mental health crisis treatment.
| Feature |
Detail |
| Duration |
Length of treatment + 30 days |
| How to access |
Through approved mental health professional |
| Frequency |
No limit |
| Requirements |
Receiving mental health crisis treatment |
Eligibility for Standard Breathing Space
You Can Apply If:
- You live or usually reside in England or Wales
- You have problem debt(s)
- You’re not in an existing debt solution (IVA, DRO, bankruptcy)
- You haven’t had Breathing Space in the last 12 months
- You can’t pay your debts as they fall due, or will be unable to
You Cannot Apply If:
- You’re already in bankruptcy, IVA, DRO, or other insolvency
- You had Standard Breathing Space in the last 12 months
- You live in Scotland or Northern Ireland (different schemes exist)
- Your debts are all excluded (see below)
Debts Covered
Included Debts
| Debt Type |
Covered |
| Credit cards |
✓ |
| Personal loans |
✓ |
| Overdrafts |
✓ |
| Store cards |
✓ |
| Catalogue debts |
✓ |
| Council tax arrears |
✓ |
| Utility arrears (gas, electric, water) |
✓ |
| Rent arrears |
✓ |
| HMRC debts (tax, NI) |
✓ |
| Benefit overpayments |
✓ |
| Payday loans |
✓ |
| Hire purchase (if not surrendering goods) |
✓ |
| Buy now pay later |
✓ |
Excluded Debts
| Debt Type |
Why Excluded |
| Student loans |
Statutory exemption |
| Child maintenance |
Child welfare priority |
| Court fines |
Criminal sanction |
| Confiscation orders |
Proceeds of crime |
| Damages for personal injury |
Compensation for harm |
| Debts from fraud |
No protection for fraud |
| Social Fund loans |
Government loans |
| Advance payments of benefits |
Government loans |
Partially Excluded
| Debt Type |
What’s Covered |
What’s Not |
| Secured debts |
Interest/charges frozen |
Repossession can continue |
| Ongoing services |
Past arrears |
Future bills still due |
| Joint debts |
Your share protected |
Co-debtor still liable |
What Happens During Breathing Space
What Creditors Must Do
| Action |
Required |
| Stop charging interest |
✓ Yes |
| Stop adding fees/charges |
✓ Yes |
| Stop contacting you for payment |
✓ Yes |
| Pause court action |
✓ Yes |
| Pause enforcement/bailiffs |
✓ Yes |
| Remove default if added during BS |
✓ Yes |
| Acknowledge receipt of notification |
✓ Yes |
What Creditors Can Still Do
| Action |
Allowed |
| Send confirmation of Breathing Space |
✓ |
| Continue essential contact (statements) |
✓ |
| Continue repossession of secured property |
✓ |
| Apply for County Court Judgment (CCJ) |
✗ |
| Apply to make you bankrupt |
✗ |
| Send bailiffs |
✗ |
| Contact you demanding payment |
✗ |
What You Must Do
| Responsibility |
Details |
| Engage with debt advice |
Meet with adviser midway through |
| Pay ongoing bills |
Breathing Space covers arrears, not new bills |
| Tell adviser of changes |
New debts, income changes |
| Start repaying problem debts |
If you can afford to |
| Follow debt solution |
Work toward long-term answer |
How to Apply
| Provider |
Contact |
Service |
| StepChange |
0800 138 1111 |
Full debt advice, can apply for BS |
| National Debtline |
0808 808 4000 |
Advice and BS applications |
| Citizens Advice |
0800 144 8848 |
Local and national advice |
| PayPlan |
0800 280 2816 |
Free debt advice |
| Money Helper |
0800 138 7777 |
Signposting to advisers |
All services are free.
Step 2: Initial Assessment
The debt adviser will:
- Review your income and expenditure
- List all your debts
- Check you’re eligible for Breathing Space
- Confirm it’s appropriate for your situation
- Explain the conditions and responsibilities
Step 3: Application
If appropriate, the adviser:
- Enters your details on the Insolvency Service system
- Lists all eligible debts
- Submits the application
Step 4: Notification
Once approved:
- Start date is recorded
- All listed creditors are notified
- You receive confirmation
- 60-day clock starts
Step 5: Midway Review
After about 30 days:
- Meet with adviser again
- Review progress toward a solution
- Confirm ongoing engagement
- Address any issues
Step 6: End of Breathing Space
At 60 days:
- Protection ends automatically
- Creditors can resume normal contact
- You should have a debt solution in place or in progress
Timeline
| Day |
What Happens |
| Day 0 |
Application submitted by adviser |
| Day 1 |
Breathing Space starts, creditors notified |
| Days 1-29 |
Protection in place, work on debt solution |
| Day 30 |
Midway review with adviser |
| Days 31-59 |
Continue working toward solution |
| Day 60 |
Breathing Space ends |
| Day 61+ |
Debt solution should be in place |
If Creditors Break the Rules
What to Do
- Keep records of all contact
- Tell your debt adviser immediately
- Adviser contacts creditor to remind them
- Report to Insolvency Service if it continues
- Complain to Financial Ombudsman if appropriate
Creditor Penalties
Creditors who break Breathing Space rules may face:
- Court orders to comply
- Compensation orders to you
- Regulatory action from FCA
- Increased costs if court involved
When Breathing Space Ends Early
Reasons for Early Cancellation
| Reason |
Details |
| You don’t engage |
Miss midway review or ignore adviser |
| Can afford to pay |
Circumstances improve significantly |
| Enter debt solution |
IVA, DRO, bankruptcy starts |
| Misleading information |
Gave false details |
| You request it |
Decide to end early |
| New debts |
Significant new borrowing |
What Happens After Cancellation
- Creditors notified immediately
- Interest and charges restart
- Enforcement can resume
- Contact from creditors restarts
After Breathing Space: Next Steps
Debt Solutions to Consider
| Solution |
Best For |
Duration |
| Debt Management Plan |
Can afford reduced payments |
Until cleared |
| IVA |
Homeowners, £10k+ debt |
5-6 years |
| Debt Relief Order |
Low income, few assets, under £30k |
12 months |
| Bankruptcy |
Large debts, few assets |
12 months |
| Full and final settlement |
Lump sum available |
One-off |
| Token payment DMP |
Very low income |
Until circumstances change |
Working with Your Adviser
During and after Breathing Space, your adviser will:
- Explain all suitable options
- Help you choose the right solution
- Support applications where needed
- Provide ongoing support
Mental Health Crisis Breathing Space
How It Works
| Feature |
Detail |
| Who applies |
Approved Mental Health Professional (AMHP) |
| Trigger |
You’re receiving crisis treatment |
| Duration |
Length of crisis treatment + 30 days |
| End date |
Not fixed at start |
| Review |
30 days after crisis treatment ends |
Who Can Start It
- Approved Mental Health Professionals
- Crisis team members
- Mental health nurses (approved)
- Care coordinators (in some cases)
No Limit on Use
Unlike Standard Breathing Space, Mental Health Crisis Breathing Space:
- Has no 12-month restriction
- Can be used multiple times
- Lasts as long as needed
- Provides strongest protection
Breathing Space vs Other Options
Comparison with Debt Solutions
| Feature |
Breathing Space |
DMP |
IVA |
DRO |
| Stops interest |
60 days |
Sometimes |
Yes |
Yes |
| Stops contact |
60 days |
Informal |
Yes |
Yes |
| Debt written off |
No |
No |
Partial |
Yes |
| Duration |
60 days |
Years |
5-6 years |
12 months |
| Credit impact |
Temporary |
Long-term |
6 years |
6 years |
| Repeat use |
Once/year |
Unlimited |
Limited |
Once/6 years |
When Breathing Space Is Right
| Use Breathing Space If |
Don’t Use If |
| Need time to think |
Already know your solution |
| Facing bailiff action |
Can afford payments |
| Threatened with court |
About to start IVA/DRO |
| Overwhelming contact |
Debts are manageable |
| Need to stabilise |
Only have excluded debts |
Summary
Breathing Space provides 60 days of legal protection from creditor action, giving you time to:
- Stop overwhelming contact from creditors
- Freeze interest and charges on most debts
- Pause enforcement and court action
- Find a lasting debt solution with free advice
It’s not a solution itself — it’s a pause that lets you work toward one. Contact a free debt advice service to see if Breathing Space is right for you and to start the application process.
The scheme represents a significant improvement in debtor protection, but should be used as a stepping stone to a permanent solution rather than just a delay.