Breathing Space
Duration: 60 days (Standard) or duration of mental health crisis treatment plus 30 days (Mental Health Crisis).
What it does: freezes enforcement, interest and creditor contact.
What it does not do: write off any debt. The debts still exist at the end of the 60 days.
Purpose: create space to get help and decide on a solution.
DRO
Duration: 12 months.
What it does: freezes enforcement and interest AND writes off included debts on discharge.
Purpose: formal insolvency solution for eligible cases.
Cost: £90 application fee. Requires Authorised Intermediary.
Eligibility: debts under £50,000, surplus under £75/month, assets under £2,000.
The relationship
Breathing Space is often used at the start of a case while options are being assessed. If a DRO turns out to be the right solution, it is applied for during or shortly after the Breathing Space.
Breathing Space is available to everyone. DRO is only available to those meeting the eligibility criteria.
You can only get Breathing Space once in a 12-month period.
Which to consider first
If you need immediate protection from an urgent enforcement action (bailiffs, court hearing, disconnection threat), Breathing Space is the fast route.
If you know a DRO fits your circumstances, going straight to DRO application through an AI is often more efficient.
Free debt help specialists advise on which route is right for specific situations.