Breathing Space
The Debt Respite Scheme, commonly known as Breathing Space, is a government scheme designed to help people find a more permanent solution to their debts. You can only access this through an FCA regulated debt adviser, Advice Debt are not able to enter you into this scheme, but you can find more about it below.
What is Breathing Space?
Struggling with problem debt?
Take a breath of relief as Breathing Space is here to help! Introduced in 2021 throughout England and Wales, this scheme offers temporary protection from creditors; plus, all interest and charges will be paused. With the duration providing time for you to get your finances back on track, reporting any changes while keeping up regular payments like mortgage repayments or taxes are necessary actions within the arrangement.
Learn more about Breathing Space here!
Standard Breathing Space
Standard breathing space will help put your debts and any enforcement action on hold for 60 days, this allows you more time to consider the options available to you.
The benefits of breathing space are:
- Creditors and debt collectors stop all action and contact
- Interest and charges are frozen for the 60-day period
- You get the time you need to work with a debt adviser to find a more permanent solution.
We cannot enter you into this scheme and you will need to speak with an FCA regulated debt adviser.
Mental Health Breathing space
A mental health breathing space is available to those who are undergoing treatment for their mental health. Any referrals made must be certified by an Approved Mental Health Professional (AMHP).
A mental health breathing space acts in a similar way to a standard breathing space, however, all enforcement action is put on hold for 12 months or for as long as your undergoing treatment.
You will need to seek advice from an FCA regulated debt adviser and Advice Debt are unable to process applications for Breathing Space.
- Apply anytime when your receiving mental health crisis treatment
- It lasts as long as your having treatment, also with a further 30 days at the end
- There is no need to seek debt advice beforehand
How do I qualify for Breathing Space?
Below is the eligibility criteria for breathing space:
- Not already be in an insolvency solution such as a IVA, DRO or Bankruptcy
- You must be a resident of England and Wales
- Not been on the breathing space scheme in the last 12 months - not applicable to mental health breathing space.
What debts can't be included in the Breathing Space Scheme?
Below is the list of debts that are not eligible for breathing space.
- Secured Debts (arrears on secured debts do qualify)
- Debts incurred after the breathing space was implemented
- Debt occurred because of fraud
- Court fines
- Obligations from a court order
- Child maintenance arrears
- Crisis or budgeting loans
- Student loans
- Personal injury damages
- Advance on payments on Universal Credit
Scotland's version of Breathing Space
With the introduction of new coronavirus legislation in 2020, people living in Scotland now have access to an extended debt moratorium lasting six months – providing a much needed opportunity for Scots facing financial distress.
Under this Moratorium on Diligence law, creditors are prevented from taking action during the period and individuals can take stock of their situation with confidence that they will be given extra time free from creditor interference.
This scheme is exclusive to Scottish residents; separate but similar plans exist elsewhere in Britain too.
The Scottish government recently proposed making such breathing space periods permanent – allowing struggling households across Scotland peace-of-mind when it comes to managing recurring debts into 2023 or beyond!
Why choose Advice Debt?
We can help you.
We all know how difficult it can be when facing financial difficulties. That’s why we are here for you. Our advisers will listen to your concerns and can provide information on the debt solutions available. We specialise in individual voluntary arrangements and you can find more about them on our website.
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*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
