Breathing Space: 60-Day Debt Respite Scheme | 2026 Guide

If you’re struggling with debt and facing pressure from creditors, bailiffs, or debt collectors, Breathing Space can give you 60 days of legal protection to get advice and find a solution.

During Breathing Space, creditors must stop all contact, enforcement action pauses, and interest and charges freeze.

Quick answers

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How long does Breathing Space last? Standard Breathing Space lasts 60 days. Mental Health Crisis Breathing Space lasts as long as your mental health crisis treatment, plus 30 days.

Who can apply for Breathing Space? Anyone in England or Wales with problem debt who hasn’t had Breathing Space in the last 12 months. You must be unable to repay debts or would be unable if enforcement continued.

Can Breathing Space stop bailiffs? Yes. Once approved, bailiffs must immediately stop all enforcement action including visits, vehicle removal, and goods seizure. They cannot contact you or add further fees.

Table of Contents

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• What is Breathing Space?
• Who qualifies for Breathing Space?
• What debts are covered?
• What protections does Breathing Space provide?
• How to apply for Breathing Space
• What happens during Breathing Space?
• What happens after Breathing Space ends?
• Mental Health Crisis Breathing Space
• Breathing Space vs IVA
• FAQs

What is Breathing Space?

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Breathing Space (officially called the Debt Respite Scheme) is a UK Government scheme that started May 4, 2021. It gives people in problem debt legal protections from creditor action for 60 days.

Two types of Breathing Space:

1. Standard Breathing Space: 60 days of protection for anyone in problem debt
2. Mental Health Crisis Breathing Space: Protection for the duration of mental health crisis treatment plus 30 days

During Breathing Space, you get time to:

• Get free debt advice from an approved provider
• Review your finances without pressure
• Explore debt solutions (IVA, DRO, DMP, bankruptcy)
• Make a plan without enforcement action

Who qualifies for Breathing Space?

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To qualify for Standard Breathing Space, you must meet ALL these criteria:

Eligibility requirements:

1. Location: Live in England or Wales (Scotland and Northern Ireland have different schemes)
2. Problem debt: Unable to repay debts or would be unable if enforcement continued
3. Not used recently: Haven’t had Breathing Space in the last 12 months
4. Not in other solutions: Not in an IVA, DRO, bankruptcy, or debt payment programme under the Mental Health Crisis scheme

You CAN apply if you:

• Are facing bailiff action
• Have CCJs or court judgments
• Are being contacted by debt collectors
• Have rent arrears, council tax arrears, utility bills
• Have HMRC debts
• Are self-employed or employed
• Receive benefits

You CANNOT apply if you:

• Had Breathing Space in the last 12 months
• Are already in a formal debt solution (IVA, bankruptcy, DRO)
• Don’t live in England or Wales
• Your application is found to be an abuse of the scheme

What debts are covered?

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Breathing Space covers most unsecured debts and some secured debts.

Covered debts:

✅ Credit cards and store cards ✅ Personal loans and payday loans ✅ Overdrafts ✅ Council tax arrears ✅ Rent arrears ✅ Utility bills (gas, electric, water) ✅ HMRC debts (tax, National Insurance, VAT) ✅ Benefit overpayments ✅ Parking fines and traffic penalties ✅ Court fines and tribunal debts ✅ Universal Credit advances ✅ Buy Now Pay Later agreements ✅ Guarantor loan debts ✅ Catalogue debts

NOT covered:

❌ Secured debts (mortgages, secured loans) unless you’re in arrears ❌ Debts incurred through fraud ❌ Damages awarded by a court for personal injury or death ❌ Debts related to confiscation orders ❌ Student loans ❌ Child maintenance arrears

Secured debts: If your mortgage or secured loan is in arrears, enforcement can be paused during Breathing Space, but interest continues to accrue.

What protections does Breathing Space provide?

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Once Breathing Space is granted, creditors and enforcement agents must:

Stop all enforcement action

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Bailiffs and enforcement agents must:

• Immediately stop all visits to your home
• Not contact you about the debt
• Not remove or sell any goods
• Not clamp or remove vehicles
• Not add further enforcement fees

Creditors must:

• Stop all contact (calls, letters, emails, texts)
• Not start or continue court action
• Not apply for CCJs
• Not take money from your wages or benefits (attachment of earnings)
• Not apply for bankruptcy proceedings

Freeze interest and charges

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All interest, fees, penalties, and charges freeze on the date Breathing Space starts. This includes:

• Credit card interest
• Loan interest
• Late payment charges
• Bailiff fees
• Debt collection charges

Exceptions:

• Secured debt interest continues (mortgages, secured loans)
• Hire purchase and conditional sale agreements (car finance) continue accruing interest
• Student loan interest continues

Protect you legally

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Creditors who breach Breathing Space rules can face:

• Financial penalties
• Requirement to refund unlawfully charged fees
• Enforcement action against them
• Disciplinary action if regulated by the FCA

How to apply for Breathing Space

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You cannot apply for Breathing Space yourself. You must apply through an approved debt advisor.

Step 1: Contact an approved debt advice provider

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Approved providers:

• StepChange Debt Charity

  • Phone: 0800 138 1111
  • Website: stepchange.org
  • Free, impartial debt advice

• National Debtline

  • Phone: 0808 808 4000
  • Website: nationaldebtline.org
  • Free, independent advice

• Citizens Advice

  • Phone: 0800 144 8848
  • Website: citizensadvice.org.uk
  • Find your local office

• Business Debtline (for business debts)

  • Phone: 0800 197 6026
  • Website: businessdebtline.org

• Christians Against Poverty (CAP)

  • Phone: 0800 328 0006
  • Website: capuk.org
  • Home visit service available

Step 2: Debt advisor assesses your situation

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The advisor will:

• Review your income, expenses, and debts
• Check you meet the eligibility criteria
• Explain how Breathing Space works
• Discuss your options after Breathing Space ends
• Apply on your behalf if you qualify

Step 3: Application submitted to Insolvency Service

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Your debt advisor submits your application electronically to the Insolvency Service.

The Insolvency Service reviews the application (usually within 1-2 working days).

Step 4: Breathing Space granted

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Once approved:

• Creditors are notified electronically within 1 working day
• Protections start immediately
• You receive confirmation from your debt advisor
• Your 60-day protection period begins

Timeline: From initial call to protection starting: typically 3-5 working days.

What happens during Breathing Space?

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During your 60-day Breathing Space period:

Your responsibilities

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You must:

• Work with your debt advisor: Attend appointments, provide information, respond to contact
• Be honest: Provide accurate information about your debts, income, and expenses
• Pay ongoing commitments: Continue paying your mortgage, rent, council tax, and utility bills as they fall due
• Not take on new credit: Don’t take out loans, credit cards, or buy goods on finance during Breathing Space

What you should do

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1. Get professional debt advice: Work with your debt advisor to review options

2. Explore debt solutions:

   • Individual Voluntary Arrangement (IVA) - Write off up to 90% of debt
   • Debt Relief Order (DRO) - Write off debts under £30,000 if you have low income
   • Debt Management Plan (DMP) - Affordable monthly payments
   • Bankruptcy - Last resort for unmanageable debt

3. Review your budget: Use the 60 days to understand your finances

4. Gather evidence: Collect letters, statements, and documents you’ll need for any debt solution

What creditors can still do

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During Breathing Space, creditors CAN:

• Send you statements of account
• Respond if you contact them
• Apply to court to cancel Breathing Space if you’re not meeting your obligations
• Take certain actions on secured debts if you’re in serious arrears

What happens after Breathing Space ends?

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When the 60 days end, protections stop and creditors can resume action unless you enter a formal debt solution.

If you enter a debt solution

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IVA (Individual Voluntary Arrangement):

• Protections continue indefinitely
• Creditors cannot pursue you
• Pay what you can afford for 5-6 years
• Remaining debt written off
• Check if you qualify in 60 seconds

DRO (Debt Relief Order):

• 12-month protection period
• Debts written off after 12 months
• Costs £90
• Must have less than £30,000 debt, £75/month spare income, £2,000 assets

Bankruptcy:

• Immediate protection from creditors
• Debts written off after 12 months
• Costs £680
• Suitable for debts over £5,000 with no assets

DMP (Debt Management Plan):

• Informal arrangement
• Creditors not legally bound to accept
• Pay reduced monthly payments
• No debt write-off

If you don’t enter a debt solution

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When Breathing Space ends without a solution:

• Enforcement can resume immediately
• Bailiffs can visit again
• Interest and charges restart (backdated to the date Breathing Space started)
• Creditors can take court action
• You cannot apply for Breathing Space again for 12 months

Mental Health Crisis Breathing Space

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A special type of Breathing Space for people receiving mental health crisis treatment.

How it differs from Standard Breathing Space

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Who qualifies

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You must be receiving mental health crisis treatment from a:

• NHS mental health service
• Crisis team
• Community mental health team
• Approved clinician
• Hospital inpatient service

How to apply

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Your mental health professional, social worker, or debt advisor can apply on your behalf.

Evidence required:

• Confirmation you’re receiving crisis treatment
• Letter from approved mental health professional
• Debt information

Duration

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Mental Health Crisis Breathing Space lasts:

• The full duration of your mental health crisis treatment, PLUS
• 30 days after treatment ends

There is no maximum duration.

Breathing Space vs IVA

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Both provide protection from creditors, but an IVA is a long-term solution.

Which is right for you?

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Use Breathing Space if:

• You need immediate short-term protection
• You’re not sure which debt solution is right
• You need time to get advice

Use an IVA if:

• You have £5,000+ unsecured debt
• You have regular income
• You want to write off debt (up to 90%)
• You want permanent bailiff protection
• You can afford monthly payments

You can use both: Apply for Breathing Space first to stop enforcement immediately, then use the 60 days to arrange an IVA.

Check if you qualify for an IVA in 60 seconds

FAQs

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Can Breathing Space stop bailiffs visiting my home?

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Yes. Once Breathing Space is approved, bailiffs must immediately stop all visits, cannot contact you, and cannot add further fees. If they visit after Breathing Space starts, they are breaching the scheme and you can report them.

How many times can I use Breathing Space?

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Once every 12 months. If you’ve had Breathing Space in the last 12 months, you cannot apply again until 12 months have passed since your last Breathing Space ended.

Can I apply for Breathing Space myself?

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No. You must apply through an approved debt advice provider like StepChange, National Debtline, or Citizens Advice. They assess your situation and submit the application to the Insolvency Service on your behalf.

Does Breathing Space affect my credit rating?

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Yes. Breathing Space will appear on your credit file and may affect your credit score. However, if you’re already in debt difficulties, your credit score is likely already affected. Breathing Space gives you time to find a solution.

What happens if I break Breathing Space rules?

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If you don’t work with your debt advisor, take on new credit, or fail to pay ongoing bills, your debt advisor or creditors can apply to cancel your Breathing Space. If cancelled, protections end immediately.

Can Breathing Space stop council tax bailiffs?

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Yes. Council tax debts are covered by Breathing Space. Once approved, council tax enforcement agents must stop all action including visits, fees, and court proceedings.

Does Breathing Space cover rent arrears?

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Yes. Rent arrears are covered, BUT your landlord can still take action to evict you if you’re in serious arrears. Breathing Space does not prevent eviction proceedings for rent arrears - it only pauses enforcement for the debt itself.

Can creditors refuse Breathing Space?

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No. Once the Insolvency Service approves your Breathing Space, creditors must comply by law. They cannot refuse or opt out. If they breach the rules, they can be penalized.

How long does it take to get Breathing Space?

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From your first call to an approved debt advisor to Breathing Space starting: typically 3-5 working days. The actual application process (once submitted) usually takes 1-2 working days for the Insolvency Service to approve.

What happens to bailiff fees during Breathing Space?

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All bailiff fees freeze on the date Breathing Space starts. They cannot add further fees during the 60 days. However, fees already added before Breathing Space started remain part of the debt.

Need immediate protection from creditors and bailiffs? Contact an approved debt advisor today to apply for Breathing Space:

• StepChange: 0800 138 1111
• National Debtline: 0808 808 4000
• Citizens Advice: 0800 144 8848

Looking for a long-term debt solution? Check if you qualify for an IVA - write off up to 90% of your debt and stop bailiffs permanently.