Breathing Space

Breathing Space is a government scheme that provides individuals struggling with debt the time to get advice and find an appropriate long-term solution.

During Breathing Space:

• You have legal protection from creditors for 60 days
• Creditors must stop all contact and collection action
• Interest and fees are frozen, preventing your debt from growing
• You get time to work with a debt adviser to find the right solution

The scheme launched on 5th May 2021, following a 2017 government pledge to help people in problem debt.

Key requirements for Breathing Space:

• You must be an individual (not a business)
• You must live in England or Wales
• You must have problem debt
• You must be receiving debt advice from an authorised debt adviser

Important notes:

• Not all debts qualify, though most common debt types are included
• You must continue paying ongoing bills like gas, electricity, and council tax
• You cannot have had a Breathing Space in the previous 12 months

Mental Health Crisis Breathing Space provides extended protections for people receiving mental health crisis treatment. Protection continues throughout treatment plus an additional 30 days.

You cannot apply for Breathing Space yourself. You must work with an authorised debt adviser who will:

1. Assess your situation and confirm you're eligible
2. Submit your application online through the Insolvency Service
3. Include all your qualifying debts in the application
4. Notify your creditors that you have Breathing Space protection

What happens next:

• Your creditors will be notified within 24 hours
• Protection begins immediately once approved
• You can add any forgotten debts during the first 20 days
• Creditors can challenge the inclusion of specific debts if they believe them ineligible

Once your Breathing Space starts, your debt adviser will work with you to find the best long-term solution for your situation.

After 30 days, we will review your situation to ensure:

• Breathing Space is still appropriate for you
• You are engaging with the debt advice process
• Your circumstances haven't significantly changed

Protection may end early if:

• You fail to engage with your debt adviser
• Your circumstances change significantly
• Specific debts are found to be ineligible
• You no longer meet the eligibility criteria

At the end of the 60 days, you should have a debt solution in place, such as a Debt Management Plan, Individual Voluntary Arrangement, or another appropriate option.

Most common debts are included in Breathing Space:

• Credit cards and store cards
• Personal loans and overdrafts
• Catalogue debts
• Council tax arrears
• Utility bill arrears
• Rent arrears
• Benefit overpayments

Debts NOT included:

• Ongoing liabilities (current bills you need to keep paying)
• Student loans
• Child maintenance arrears
• Court fines (unless you have a payment plan)
• Debts from fraud or fraudulent breach of trust
• Crisis loans or budgeting loans from the Social Fund

If you're struggling with debt, Breathing Space could give you the time and protection you need to find a solution.

Contact Debt Free Advice today:

• Call our free helpline: 0800 808 5700
• Open 7 days a week, 8am to 8pm
• All advice is free, confidential, and impartial

Our expert advisers can assess whether Breathing Space is right for you and help you apply if you're eligible. We'll support you throughout the process and help you find a long-term solution to your debt problems.