What Breathing Space actually does
Breathing Space is a statutory protection introduced under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. It gives individuals in financial difficulty a period of legal relief from creditor action — 60 days for a standard Breathing Space, or for a Mental Health Crisis Breathing Space the duration of a mental health crisis treatment period plus 30 days.
A Standard Breathing Space can only be used once in a 12-month period. A Mental Health Crisis Breathing Space does not have this limitation.
During Breathing Space, most creditors cannot contact you to chase the debt, add interest or charges, or take enforcement action. Existing court proceedings relating to the qualifying debts should be stayed. For someone facing relentless creditor pressure, a bankruptcy petition, or imminent enforcement, those protections can be the difference between having time to resolve the situation and losing control of it entirely.
Breathing Space does not write off your debts. It does not alter what you owe. What it gives you is time — protected time — to work out what comes next.
Only debt advisers can access Breathing Space
This is one of the most important and least understood aspects of the scheme. Breathing Space is legislation — but it is not self-service. It can only be accessed through an FCA-authorised debt adviser. Your solicitor cannot do it. Your accountant cannot do it. Even if they are representing you in related proceedings, Breathing Space sits outside their authority.
This matters because it means the debt adviser you choose — and the way they apply the scheme — shapes the protection you actually receive.
How we handle Breathing Space
Breathing Space is available through free debt advice services. We charge for ours. The difference is in how we apply it.
Timing strategy — not just speed
When to submit matters as much as whether to submit. If you have a bankruptcy petition hearing approaching, entering Breathing Space immediately may not be the right move. We may advise waiting until a few days before the hearing, giving you more protected time to deal with the petition debt rather than burning days of the moratorium prematurely. We look at your specific deadlines and work backwards from them.
We notify the court directly
Creditors have a legal duty to inform the court of a Breathing Space where proceedings are active. We don’t leave that to them. We notify the court directly, copying the creditor, to ensure the stay takes effect without delay and without relying on a creditor’s process or goodwill.
Agents included from the start
We include agents and collection firms in the application itself — not just the originating creditor. Creditors are supposed to notify their agents; in practice, this does not always happen promptly. Including agents directly means the protection is immediate and comprehensive, and you experience relief from day one rather than chasing down ongoing contact from a collection firm that claims it hasn’t been told.
We don’t fold under pressure
Some creditors challenge Breathing Space aggressively. Threatening letters, urgent court applications, suggestions that the submission is improper — these are not unusual where the sums are significant. We assert our clients’ position and do not capitulate. If you are entitled to the protection, we will defend it.
Using the 60 days productively
Breathing Space buys time. We use that time. During the moratorium we work with you to understand the full picture of your situation and identify a realistic path forward — whether that is a negotiated arrangement, a formal insolvency process, or a different solution. The 60 days should leave you in a better position, not simply defer the problem.
All relevant debts included
We review your full debt position carefully before submission to ensure that every qualifying debt is included. Omissions in the application can leave gaps in your protection that creditors are quick to exploit. We close those gaps before we submit.
Free debt advice providers can apply for Breathing Space and do so for many people. You have the choice to decide what you want.
When a day makes all the difference
The following account illustrates what can go wrong when Breathing Space is not applied in time.
Referred by a solicitor. Eviction on Thursday. It was Monday.
A potential client was referred to us by his solicitor on a Monday. When we spoke to him, he was focused on his personal credit cards — he had lost his job and the calls from creditors had become relentless. After we established that he was a homeowner, he mentioned that his mortgage lender hadn’t been chasing him despite him being in arrears. Then, almost in passing, he mentioned that he was involved in eviction proceedings.
We asked him to send the court documents to us immediately. He did. We called him back the same day and made it clear to him that he was facing eviction on Thursday unless he paid the mortgage arrears in full. He told us he was waiting for money from an employment tribunal decision and believed he had more time to deal with the mortgage. He didn’t.
What he did have was Breathing Space. A Breathing Space would stop the eviction for 60 days — giving him time to receive the tribunal payment and resolve the arrears. Because protection begins the day after submission, the application had to be submitted by Wednesday at the absolute latest. It was Monday. We told him we could submit on Tuesday, giving us time to ensure the application was properly constructed, that all agents were included.
He decided not to use our service. Instead, he went to a free provider on Tuesday. They had the same information we had. Due to their internal processes, however, they were unable to submit the Breathing Space application in time.
He called us at 8am on Thursday. The bailiff was at the door. He had checked with the bailiff and there was no Breathing Space registered. We checked and confirmed the same. There was nothing we could do at that point.
We told him to contact the free provider when they opened at 9am. They told him they would submit the Breathing Space that day — Thursday. It was too late. Protection would only begin on Friday. The eviction proceeded.
Which debts are covered?
Most personal debts qualify for inclusion, including credit cards, personal loans, overdrafts, mortgage arrears, council tax arrears, HMRC debts, and utility debts. Some debts are excluded by the regulations — ongoing secured mortgage payments (as opposed to arrears), child maintenance, and certain student loans among them.
The application must list the qualifying debts. Getting that list right matters. If a debt is missing from the application, the protections do not automatically extend to it. Many creditors use agents and collection firms — if only the creditor is named, the agent may not be informed promptly, and contact and enforcement can continue. How the application is constructed directly affects the relief experienced from day one.
The mechanics
Once a debt adviser submits a Breathing Space application, it is registered on the Insolvency Service’s Breathing Space register. Protection begins the day after submission. The Insolvency Service has the responsibility to notify all the parties in the Breathing Space application, and they are then legally required to inform the court of the Breathing Space if proceedings are active — and to inform their agents.
Creditors can challenge a Breathing Space by applying to court, typically on grounds that the debtor is not eligible, that a debt should not be included, or that the moratorium is causing them disproportionate prejudice. Challenges must be dealt with promptly. The 60-day clock runs regardless.
At the end of the period, the Breathing Space expires and normal creditor rights are restored. The purpose of the 60 days is to allow a longer-term solution to be identified and put in place — whether that is a repayment arrangement, a formal insolvency procedure, or something else.
If you are a solicitor, accountant, or IFA and a client’s situation points toward Breathing Space, a referral to us can be made quickly. We will assess eligibility, advise on timing, and — where instructed — handle the application, court notification, and the 60-day period that follows.
We work alongside rather than across professional advisers. Where legal proceedings are active, we coordinate with your firm directly to ensure the Breathing Space and any related proceedings are managed in step. If you would like to discuss a specific client situation, call us or use the form below — initial conversations carry no charge and no obligation.
Find out more about how we work with professional advisers →