The Debt Breathing Space Scheme: 60 Days of Protection Explained

If you are struggling with debt and feel overwhelmed by creditor calls, letters, and the threat of legal action, the Breathing Space scheme may give you the time and space you need to get proper advice and start taking control. Introduced in May 2021, it provides up to 60 days of legal protection from most creditors while you work with a debt adviser. Here is everything you need to know.

What Is Breathing Space?

The Debt Respite Scheme (Breathing Space) was introduced by the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. It provides two types of protection:

• Standard Breathing Space: Available to anyone in problem debt. Provides 60 days of protection.
• Mental Health Crisis Breathing Space: Available to people receiving mental health crisis treatment. Lasts for the duration of the treatment plus 30 days, with no upper time limit.

What Protection Do You Get?

During the Breathing Space period, the following protections apply to eligible debts:

• Interest and charges freeze: Creditors cannot add interest, fees, penalties, or charges to your debt.
• Enforcement ban: Creditors cannot take enforcement action — including applying for a CCJ, using bailiffs, or issuing a statutory demand.
• Contact restrictions: Creditors cannot contact you directly to demand payment (though they can still send regular statements).
• Legal proceedings stay: Any existing county court proceedings or enforcement action is paused.

These protections cover most personal debts including credit cards, personal loans, overdrafts, council tax arrears, and benefit overpayments. Some debts are excluded — notably secured debts (mortgage, secured loans), student loans, and criminal fines.

How to Apply

You cannot apply for Breathing Space yourself. You must apply through a registered debt adviser, which includes:

• StepChange (0800 138 1111) — free charity debt advice
• National Debtline (0808 808 4000) — free charity debt advice
• Citizens Advice
• Local authority debt advisers
• Any FCA-authorised debt advice provider

The adviser will assess your debts and financial circumstances, confirm you are eligible (you must be a UK resident with qualifying debts that you cannot repay when they fall due), and register the Breathing Space with the Insolvency Service. Once registered, the protections take effect immediately and creditors are notified electronically.

Your Obligations During Breathing Space

Breathing Space is not a free pass. You have obligations during the 60 days:

• Work with your debt adviser to review your financial situation and consider your options.
• Do not take on new credit or incur new debt that you cannot afford.
• You must continue paying ongoing bills that are not included in the Breathing Space (e.g. rent, utilities) — it does not suspend these obligations.

If you fail to engage with your debt adviser or take on new debt, the Breathing Space may be cancelled and creditors can resume action.

What Happens After 60 Days?

Breathing Space does not write off your debts — it pauses them. After 60 days (or longer for the Mental Health Crisis version), your debts resume with the interest and charges from before the Breathing Space period. Any enforcement action that was paused can restart.

The purpose of Breathing Space is to give you time to get proper debt advice and start moving towards a debt solution. During the 60 days, your adviser will work with you to identify the right route forward, which might include:

• A Debt Management Plan (DMP) — a structured repayment plan through a debt adviser
• An Individual Voluntary Arrangement (IVA) — a formal insolvency procedure with a five-year repayment plan
• Bankruptcy — if debts are unmanageable and no other solution is viable
• A Debt Relief Order (DRO) — for people with low income, few assets, and debts under £30,000

The best option depends on your specific circumstances, income, assets, and the nature of your debts. Your debt adviser will help you understand which route is appropriate.

The Mental Health Crisis Breathing Space

If you are receiving mental health crisis treatment (including inpatient or crisis team treatment), you qualify for the Mental Health Crisis Breathing Space. This version lasts for the entire duration of your treatment plus 30 days — there is no 60-day cap. You also do not have the same obligation to engage with a debt adviser during treatment. A Mental Health Crisis Breathing Space can only be applied for by an approved mental health professional or care coordinator on your behalf, in conjunction with a debt adviser.

Getting Help

If you are in problem debt and feeling overwhelmed, do not wait. Contact StepChange or National Debtline — both are free, confidential, and non-judgmental. They can advise you on whether Breathing Space is right for your situation and, if so, apply on your behalf immediately.