Breathing space is a scheme introduced in 2021 throughout England and Wales to help consumers struggling with problem debt.

There are two types of Breathing Space available - standard and mental health crisis breathing space.

Both involve temporary protection from debt collection as measures are taken to get on top of outstanding debt.

Standard Breathing Space
This is a type of Breathing Space aimed at consumers who are struggling with problem debt. To qualify, you must apply through an official debt advisor. The benefits of this option include:

• Creditors and debt collectors pause contact
• Interest and charges are frozen for the duration of the scheme
• You have time to look into a solution without added pressure from creditors

The Standard Breathing Space lasts up to 60 days maximum. After the initial 30 days, a review takes place to determine whether you will qualify for the extension.

Mental Health Breathing Space
This type of Breathing Space is intended for consumers struggling with debt, whilst also receiving Mental Health Crisis treatment, e.g. detained under the Mental Health Act.

If you qualify, you will receive the same protection as Standard Breathing Space, but there are a few differences:

• You can apply any time you receive Mental Health Crisis treatment
• It lasts as long as your treatment does, plus an extra 30 days at the end
• You do not need to seek debt advice beforehand

Some of the eligibility criteria for Breathing Space include:

• You must not already be in an insolvency solution, e.g. IVA, DRO or Bankruptcy
• You must be situated in England or Wales
• You can’t have been on Standard Breathing Space within the last 12 months
• You must agree to not take out any further credit exceeding £500 whilst on the scheme

Breathing space can be a helpful temporary solution if you are facing difficulty with debt. If you're unsure if this is suitable for you, or you want to assess your options, our advisors are here to help you.

Contact us now for free, non-judgmental support from our friendly advisors.