What Is the Breathing Space Scheme?
The Breathing Space scheme, officially the Debt Respite Scheme, gives people in problem debt legal protection from creditor action for a fixed period, usually 60 days. During this time, most creditors cannot add further interest or charges, contact you about the debt, or take enforcement action such as bailiffs or County Court Judgments. It gives you time to get proper debt advice and work out a longer-term solution without the pressure of ongoing collection activity.
Who Can Apply for Breathing Space
You need to go through a debt adviser to enter Breathing Space, rather than applying directly. To qualify, you generally need to:
- Live in England or Wales.
- Owe money to at least one creditor covered by the scheme.
- Be genuinely unable to pay your debts as they fall due.
- Not already be in an active Breathing Space, an IVA, bankruptcy, or a Debt Relief Order.
An FCA-regulated debt adviser assesses your situation and applies for Breathing Space on your behalf if it looks like the right option.
What Breathing Space Actually Protects You From
- Most creditors cannot add further interest, fees, or charges on included debts.
- Creditors cannot start or continue most types of enforcement action, including County Court claims, charging orders, and bailiff visits.
- Contact from creditors about the debt is largely paused, giving you space to focus on getting advice rather than fielding calls and letters.
Breathing Space does not write off any debt. You still owe everything you owed before, and you are still expected to keep up with ongoing essential payments, such as your rent, mortgage, and living costs, throughout the 60 days.
Mental Health Crisis Breathing Space
A separate, extended version of the scheme exists for people receiving treatment for a mental health crisis. This version lasts for the duration of the person’s crisis treatment, plus 30 days afterward, rather than the standard 60 days. A mental health professional needs to confirm the person is receiving crisis treatment for this extended protection to apply, and it can be arranged without the person needing to contact a debt adviser directly themselves, in recognition of how difficult that can be during a crisis.
What Happens After the 60 Days
Breathing Space is designed as a pause, not a permanent solution. Before it ends, your debt adviser should help you put a longer-term plan in place, which might include a Debt Management Plan, an IVA, a Debt Relief Order, or bankruptcy, depending on your circumstances. Once Breathing Space ends, normal creditor rights and enforcement action resume unless you have moved into one of these formal or informal debt solutions.
Can You Be Refused Breathing Space?
Yes. Your debt adviser assesses your situation, and Breathing Space is not automatic just because you request it. It can also be cancelled early if you fail to keep up with ongoing essential payments during the 60 days, or if it turns out you were not eligible when you applied.
Frequently Asked Questions
Does Breathing Space affect my credit file?
Entering Breathing Space itself is recorded, and lenders can see it when you apply for new credit, though it is generally viewed differently from a formal insolvency marker like bankruptcy or a DRO.
Can I apply for Breathing Space myself?
No. You need to go through a debt adviser who is authorised to apply for Breathing Space on your behalf, after assessing your situation.
Do all my debts qualify for Breathing Space?
Most personal debts qualify, but some, including certain fines, child maintenance arrears, and some student loans, are excluded from the scheme’s protection.
Can I use Breathing Space more than once?
You can apply again after a previous Breathing Space ends, but there are limits on how frequently you can use it, designed to prevent it from being used as a repeated way to avoid dealing with debt.
Getting Help
If you are struggling with debt and need time to think without creditor pressure, speak to a free, FCA-regulated debt adviser about whether Breathing Space is right for you. Our guides to Debt Management Plans and Debt Relief Orders cover what might come next once your Breathing Space period ends.
This article gives general information only. It does not constitute financial or legal advice. Always speak to a qualified, FCA-regulated debt adviser about your specific circumstances.