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What Is Breathing Space and Who Can Use It?
If debt letters are piling up, creditors are calling, and enforcement action feels imminent, Breathing Space is a formal legal protection that can pause all of that for a fixed period. Introduced in England and Wales in May 2021, the scheme was created to give people in serious debt difficulty a window of stability — not to write off debt, but to create breathing room while a longer-term plan is worked out.
There are two types of Breathing Space available in England and Wales. The Standard Breathing Space lasts for up to 60 days and is open to most people struggling with problem debt. The Mental Health Crisis Breathing Space lasts for the entire duration of a person's mental health crisis treatment, plus 30 days after — with no maximum time cap. Scotland and Northern Ireland have separate debt-relief frameworks that work differently.
What Breathing Space Actually Pauses
Once a Breathing Space moratorium begins, creditors covered by the scheme are legally required to stop a range of actions. Understanding exactly what is — and is not — paused is important before applying.
What is paused during a Standard Breathing Space
- Most interest, fees, and penalty charges on qualifying debts
- Creditor contact seeking payment on those debts
- Enforcement action, including bailiff visits and county court judgments (CCJs) being enforced
- New applications by creditors for CCJs on qualifying debts
- Creditors starting or continuing certain insolvency proceedings
What is NOT paused
- Ongoing mortgage or rent payments — these must continue
- Secured debts in some circumstances
- Court fines (criminal fines do not qualify)
- Child maintenance arrears
- Student loans
- Debts incurred after the moratorium begins
It is worth noting that Breathing Space does not reduce the amount owed. Interest that was accruing before the moratorium remains on the account; what changes is that no new interest or charges can be added during the protected period. According to GOV.UK, creditors must also not pursue or enforce debts included in the moratorium — any who do so risk being in breach of the regulations.
Wondering if Breathing Space is an option?
We refer you to FCA-regulated debt advice specialists who can assess your situation and, where appropriate, submit a Breathing Space application on your behalf.
Who Is Eligible to Apply?
To qualify for a Standard Breathing Space, a person must be an individual (not a business entity) who is struggling to repay one or more qualifying debts, and must not already be subject to certain insolvency procedures. According to GOV.UK guidance, a person is not eligible if they are already in an active Breathing Space, have had a Standard Breathing Space in the previous 12 months, or are currently subject to a Debt Relief Order (DRO), Individual Voluntary Arrangement (IVA), or bankruptcy order.
There is no minimum or maximum debt level required to access Standard Breathing Space. The debt must simply be a qualifying debt — which covers most consumer debts including credit cards, personal loans, overdrafts, council tax arrears, rent arrears, and utility bill arrears.
Mental Health Crisis Breathing Space — additional criteria
The Mental Health Crisis Breathing Space has an extra eligibility condition: the applicant must be receiving mental health crisis treatment at the time of application. According to the regulations, this treatment must be confirmed by an approved mental health professional (AMHP). The application must be submitted by a debt adviser, who must obtain that confirmation before proceeding.
How the Application Process Works
One of the most common points of confusion about Breathing Space is that there is no government portal or form that individuals can fill in themselves. The application must be submitted by a regulated debt adviser on behalf of the person seeking protection. This requirement exists because the adviser must first assess whether the individual genuinely meets the eligibility criteria — the scheme is not designed to be used as a stalling tactic.
Step 1: Contact a regulated debt adviser
The first step is to speak with a regulated debt adviser — either a free-sector charity such as StepChange or Citizens Advice, or an FCA-regulated commercial firm. The adviser will carry out an assessment of the person's financial situation, including the debts they hold, their income, and whether other debt solutions might be more suitable in the longer term.
Step 2: The adviser submits the application
If the adviser is satisfied that Breathing Space is appropriate, they submit the application to the Insolvency Service's online register. According to GOV.UK, the moratorium typically begins on the day the application is submitted, meaning protection starts almost immediately once approved and registered.
Step 3: Creditors are notified
The Insolvency Service notifies all creditors named in the moratorium. From that point, those creditors are legally obliged to stop all interest, charges, and enforcement activity on the qualifying debts. The person applying should keep their adviser informed of any creditor that continues to contact them despite the moratorium being in place.
Step 4: A midpoint review (Standard Breathing Space)
For Standard Breathing Space, the regulations require the debt adviser to carry out a review at the 25-day mark. This is not optional — if the adviser cannot contact the person, or if it becomes clear that Breathing Space is no longer appropriate (for example, because the person has moved abroad or a suitable debt solution has been agreed), the moratorium can be cancelled early. The person also has an obligation to engage with their adviser during this period.
What Happens After the 60 Days?
Breathing Space does not resolve debt — it creates a window during which a plan can be made. When the 60-day period ends, creditors are free to resume contact and enforcement activity, and interest and charges begin to accrue again at the original contractual rate. This means the period should ideally be used productively to explore formal debt solutions.
Common longer-term options explored during Breathing Space include a Debt Management Plan (DMP), an Individual Voluntary Arrangement (IVA), a Debt Relief Order (DRO), or in some cases bankruptcy. Each of these has its own eligibility criteria, fees, and implications for credit records and assets. A regulated debt adviser is best placed to explain which, if any, of these options may suit a particular person's circumstances — UK Debt Team does not provide debt advice and does not assess individual cases.
Common Questions About Breathing Space
Will applying affect my credit file?
Yes. The existence of a Breathing Space moratorium is recorded on the Insolvency Service's register, which is publicly accessible. Credit reference agencies may also note it on a credit file, which could affect credit applications during and after the period. However, for many people already in serious debt difficulty, their credit rating may already be impacted by missed payments.
Can a creditor object to being included?
According to GOV.UK, creditors can apply to the court to have their debt removed from a Breathing Space moratorium, but only in limited circumstances — for example, if they believe the person does not genuinely qualify, or if they believe there has been fraud or misrepresentation. Creditors cannot simply opt out because they disagree with the scheme.
Can Breathing Space be used more than once?
A Standard Breathing Space can only be applied for once in any 12-month rolling period. There is no such restriction on the Mental Health Crisis Breathing Space, which is tied to the clinical situation rather than a calendar cycle. However, repeated use of Standard Breathing Space without a longer-term plan in place may be questioned by a debt adviser during the eligibility assessment.
Does Breathing Space apply in Scotland?
No. The Breathing Space scheme applies only in England and Wales. Scotland has its own framework, including the Debt Arrangement Scheme (DAS), which is administered by the Accountant in Bankruptcy. Northern Ireland has separate insolvency legislation as well. Anyone in Scotland or Northern Ireland looking for debt protection should seek advice specific to those jurisdictions.
Where to Get Regulated Debt Advice
Because Breathing Space can only be applied for through a regulated debt adviser, the first step for anyone considering it is to contact one of the organisations qualified to submit an application. Free debt advice is available from the following organisations:
- MoneyHelper (moneyhelper.org.uk) — backed by the Money and Pensions Service
- StepChange Debt Charity (stepchange.org) — a registered charity providing free debt advice
- Citizens Advice (citizensadvice.org.uk) — local and national free advice services
- National Debtline (nationaldebtline.org) — free telephone and online debt advice
These organisations are authorised to assess eligibility for Breathing Space and, where appropriate, to submit the application to the Insolvency Service on a person's behalf. UK Debt Team is a referral business, not a debt advice provider — if someone contacts UK Debt Team, they will be referred to an FCA-regulated firm within our panel who can carry out a proper assessment.