Breathing Space UK Guide (60-Day Debt Protection, How to Apply)

How Breathing Space Works

Breathing Space provides 60 consecutive days of legal protection from creditors. During this period: interest and charges are frozen — creditors cannot add interest, fees, or charges to your debts. This prevents your debt from growing while you seek advice. Creditor contact stops — creditors cannot contact you demanding payment. All correspondence should go through your debt advisor. No enforcement action — creditors cannot start or continue court action, use bailiffs, apply for a CCJ, or enforce an existing CCJ. Existing CCJ enforcement paused — if a CCJ enforcement is underway (e.g., bailiffs), it must stop during the Breathing Space period. No repossession — creditors cannot repossess goods or your home (with some exceptions for secured debts). The scheme applies to most personal debts including credit cards, loans, overdrafts, store cards, catalogue debts, payday loans, rent arrears, council tax arrears, and utility bill arrears. It does not cover secured debts (mortgage, car finance), child support, court fines, student loans, or TV licence penalties. You can only enter Breathing Space once every 12 months. It is not a permanent solution — it is designed as a pause while you arrange a formal debt solution.

Eligibility and How to Apply

To qualify for Breathing Space, you must: be resident in England or Wales (the scheme does not apply in Scotland or Northern Ireland, though Scotland has a similar Moratorium on Debt Enforcement). Be unable to repay your debts as they fall due — you do not need to prove this formally, but your debt advisor will assess your financial situation. Get professional debt advice — you cannot apply for Breathing Space directly. You must contact a qualified debt advisor who is FCA-authorised or a local authority approved intermediary. They assess your eligibility and register your Breathing Space with the Insolvency Service. Approved advisors include StepChange, Citizens Advice, National Debtline, PayPlan, and local authority advisors. The process: book a full debt advice session with one of these services. The advisor reviews your income, debts, essential spending, and assets. If Breathing Space is appropriate, they register it online with the Insolvency Service. The protection starts immediately. Your creditors are notified automatically. You do not need to contact creditors yourself. The entire service is free if you use a charity provider.

What Breathing Space Does Not Cover

Breathing Space has important limitations. Secured debts — mortgage, secured loans, and car finance (HP, PCP) are not covered. Your lender can still repossess your home if you fall behind on mortgage payments, though many lenders voluntarily pause repossession during Breathing Space. Priority debts — child support arrears, magistrates court fines, TV licence fines, and certain benefit overpayments are excluded from protection. These debts can still be enforced. Student loans — Student Loans Company debts are not covered. New debts — Breathing Space only covers debts owed before the start date. Any credit you take out during the 60 days is not protected. Debt limit — there is no maximum debt limit for Breathing Space, unlike DROs (£50,000 limit). Mental Health Crisis Breathing Space — if you are receiving mental health crisis treatment, you may qualify for an enhanced Breathing Space of 60 days with no limit on how often you can use it. The standard Breathing Space requires confirmation from a debt advisor; the mental health version requires a mental health professional (GP, psychiatrist, community mental health team) to confirm your treatment. This protection can be renewed as long as treatment continues.

Impact on Credit File

Breathing Space does affect your credit file. While you are in Breathing Space, your creditors may record a marker on your credit report indicating that a Breathing Space is active. This could affect your ability to get new credit during the 60-day period. After the Breathing Space ends, the marker is removed. However, if you entered Breathing Space because you were already behind on payments, those late payment markers will remain on your file for 6 years. Breathing Space itself does not create a new negative entry — it is the missed payments that matter. Some credit reference agencies (Experian, Equifax, TransUnion) note the Breathing Space on your report, but it is less damaging than a default or CCJ. The key is to use the 60 days productively — if you move into a formal debt solution (DMP, IVA, DRO), that solution will have its own credit impact. Breathing Space is designed to prevent your situation from worsening while you decide on the best long-term option. Check your credit reports on all three agencies before and after Breathing Space to understand the impact. See our Credit Score guide → for monitoring tips.

What Happens After 60 Days

When Breathing Space ends, creditor protection stops. You should have used the 60 days to arrange a long-term debt solution. Your debt advisor should help you choose one of the following based on your circumstances: Debt Management Plan (DMP) — if you have regular income and can afford payments. Individual Voluntary Arrangement (IVA) — for debts over £10,000 with multiple creditors. Debt Relief Order (DRO) — if you have low income, few assets, and debts under £50,000. Bankruptcy — for very high debts or when other options are unsuitable. If you do not arrange a formal solution by day 60, creditors can resume contact and enforcement action. You cannot re-enter Breathing Space for 12 months from the end of the previous one. If your circumstances have not changed — if you still cannot pay and have not found a solution, contact your debt advisor immediately. They may recommend a different approach or help you negotiate directly with creditors. The Insolvency Service does not require you to enter a formal solution after Breathing Space, but failing to do so means you lose legal protection and face creditor action. Use the 60 days wisely — book follow-up appointments with your advisor to finalise your debt plan before the deadline.

FAQs

Can I get Breathing Space more than once?

Standard Breathing Space is available once every 12 months. If you are receiving mental health crisis treatment, you can get multiple Mental Health Breathing Spaces with no 12-month gap requirement. Each must be certified by a mental health professional.

Does Breathing Space stop bailiffs?

Yes. Bailiff enforcement must stop during the Breathing Space period. However, if bailiffs have already seized goods, they will not be returned unless the bailiff agrees. Breathing Space pausing enforcement does not cancel existing debts.

Will my landlord find out about Breathing Space?

If your rent arrears are included in Breathing Space, your landlord will be notified by the Insolvency Service. Breathing Space does not stop eviction proceedings — your landlord can still apply to court for possession if you are in rent arrears.

Can I use a credit card during Breathing Space?

You should not take out new credit during Breathing Space. New debts incurred during the 60 days are not protected. Any new borrowing may also breach the terms of the scheme and lead to early termination.

Is Breathing Space free?

Yes. The scheme itself costs nothing. If you use a charity debt advisor (StepChange, Citizens Advice), the entire service is free. The government funded the scheme to ensure universal access regardless of ability to pay for advice.