Breathing Space Explained: What It Means for Debt

What Does "Breathing Space" Actually Mean?

If debts have been building and letters or calls from creditors are adding to the pressure, a period of legal protection may be available under a scheme called Breathing Space. Formally known as the Debt Respite Scheme, it was introduced in England and Wales in May 2021 and gives eligible people a legally protected period during which most creditors must stop adding interest, fees, and charges — and are prohibited from taking enforcement action.

The scheme does not write off debt or reduce the amount owed. What it does is create a window of time — up to 60 days for most people — during which someone can work with a debt adviser to understand their options without the situation worsening due to escalating charges or enforcement activity.

There are two types of Breathing Space: Standard Breathing Space, available to most people in problem debt, and Mental Health Crisis Breathing Space, which has different eligibility rules and duration. Both are explained below.

The Two Types of Breathing Space

Standard Breathing Space

Standard Breathing Space lasts for up to 60 days. During this period, eligible creditors must pause enforcement action and stop applying most interest and penalty charges to qualifying debts. It is available to anyone who is struggling with debt and is receiving debt advice from a regulated debt adviser or an authorised debt advice provider.

According to GOV.UK, a Standard Breathing Space can only be registered by a debt adviser — the debtor cannot apply directly. The adviser must confirm that the person is receiving debt advice and that Breathing Space is appropriate given their circumstances.

Mental Health Crisis Breathing Space

Mental Health Crisis Breathing Space is available to people who are receiving mental health crisis treatment. It lasts for as long as the crisis treatment continues, plus 30 days after treatment ends — meaning there is no fixed upper time limit in the way there is for Standard Breathing Space.

This type must be registered by an approved mental health professional (AMHP) or, in some circumstances, a debt adviser working alongside one. The same protections apply: creditors must pause enforcement, and interest and charges must be frozen on qualifying debts.

Which Debts Are Covered?

Not all debts qualify for Breathing Space protection. According to GOV.UK, the following types of debt are generally covered:

• Credit cards and store cards
• Personal loans and overdrafts
• Utility bill arrears (gas, electricity, water)
• Council tax arrears
• Benefit overpayments
• HMRC debts (subject to specific conditions)
• Rent arrears (but not ongoing rent — just the arrears)
• Mortgage arrears (but not the ongoing mortgage)

Some debts are excluded and cannot be protected under the scheme. These include:

• Secured debts where the creditor has already obtained a court order and possession proceedings are under way
• Debts incurred through fraud
• Criminal fines
• Child maintenance arrears
• Student loans
• Confiscation orders

It is worth noting that even where a debt is eligible, individual circumstances matter. A regulated debt adviser will review which of someone's debts qualify before registering Breathing Space.

What Creditors Must Do During Breathing Space

Once Breathing Space is registered, creditors with qualifying debts receive a legal notice. From that point, according to GOV.UK, they must:

• Stop applying interest, fees, and penalty charges to the qualifying debt
• Pause most enforcement action, including bailiff action and court proceedings
• Not contact the debtor to request payment of the qualifying debt
• Not instruct a debt collector to pursue the debt during the protected period

Creditors do have the right to apply to the Insolvency Service to have a Breathing Space cancelled if they believe it has been registered incorrectly or if the debtor's circumstances have changed materially. However, the starting position is that the legal freeze applies from the moment of registration.

It is also important to understand that Breathing Space does not cancel any debt. The amount owed continues to exist; interest and charges are paused, not forgiven. When the Breathing Space period ends, the creditor can resume normal activity unless a longer-term debt solution has been put in place.

Who Can Register Breathing Space — and How?

A person in debt cannot register Breathing Space themselves. The application must be made by a regulated debt adviser — for example, someone at a free debt advice charity or an FCA-authorised debt advice firm. The adviser enters the details into an online system administered by the Insolvency Service.

The adviser must confirm that the person qualifies — broadly, that they are an individual (not a company), are a resident in England or Wales, are not in an active insolvency process (such as bankruptcy or an IVA), and have not already had a Breathing Space in the previous 12 months (for Standard Breathing Space).

Free debt advice is available from MoneyHelper, StepChange, Citizens Advice, and National Debtline. Advisers at these organisations can assess whether Breathing Space is appropriate and, if so, register it. Speaking to a regulated adviser is the only route into the scheme.

What Happens During the 60 Days?

The purpose of the protected period is to give someone time to get proper debt advice and explore longer-term options. For Standard Breathing Space, the debt adviser must conduct a midpoint review — typically around day 25 — to confirm that the person is still engaging with debt advice and that Breathing Space remains appropriate.

If the debtor stops engaging with their debt adviser, or if circumstances change significantly, the Breathing Space can be cancelled early. It can also end early if the debtor enters a formal insolvency process — such as a Debt Relief Order (DRO), an Individual Voluntary Arrangement (IVA), or bankruptcy — because those processes carry their own legal protections.

At the end of the 60-day period, Breathing Space simply expires. The creditor can then resume normal activity. The practical aim is that, by that point, the person will have agreed a debt solution with their adviser — whether that is a DMP, DRO, IVA, or another route — so that a new form of protection or arrangement is in place.

Common Misconceptions About Breathing Space

"Breathing Space writes off my debt"

It does not. The scheme pauses interest and enforcement; it does not reduce or cancel the amount owed. Whether debt can be written off depends on the type of formal solution agreed with a debt adviser — for example, a DRO or IVA can result in debt being written off at the end of the process, but Breathing Space itself does not do this.

"I can apply for it myself"

The scheme is not self-service. Only a regulated debt adviser or an approved mental health professional can register Breathing Space on someone's behalf. Contacting a free debt advice service or an FCA-authorised debt advice firm is the necessary first step.

"All my debts will be frozen"

Only qualifying debts are protected. Ongoing obligations — such as the regular monthly mortgage payment or current rent — continue as normal. Breathing Space covers arrears and existing debt balances, not new obligations as they fall due.

"Creditors cannot contact me at all"

Creditors are prohibited from contacting the debtor about qualifying debts to request payment. However, communication about other matters — for example, an update on an account for informational purposes — may still occur in some circumstances. The key restriction is on enforcement and payment demands relating to the qualifying debt.

Breathing Space and Longer-Term Debt Solutions

Breathing Space is a short-term protection, not a long-term solution. For many people, it is the starting point of a process that leads to a formal debt solution. The main formal routes available in England and Wales include:

• Debt Management Plan (DMP): An informal arrangement to repay debts at a reduced rate over time, typically managed by a debt advice firm.
• Debt Relief Order (DRO): A formal insolvency option for people with lower levels of debt and minimal assets. The debt limit is currently £50,000, following changes introduced in June 2024. The £90 fee that previously applied was also removed.
• Individual Voluntary Arrangement (IVA): A formal agreement with creditors, typically over five or six years, after which remaining eligible debt may be written off.
• Bankruptcy: A formal insolvency process with significant implications for assets and credit, but which can bring debt to a defined end point.

A regulated debt adviser can explain how each of these works in general terms and help someone understand which routes may be relevant to their situation. UK Debt Team is not a debt advice provider — the information on this page is general factual information about how the Debt Respite Scheme operates. For personalised debt advice, speaking to one of the regulated organisations listed below is the appropriate step.