What is the Breathing Space debt scheme?

What is Breathing Space

This applies to England. If you are struggling with money and owe people funds, you might find help through a special debt scheme. This program gives you breathing space from the stress of chasing bills. It offers temporary legal protection from the people you owe, who are called creditors. During this time, you can speak with a professional adviser to look at your options and make a plan. You still need to manage your everyday bills and rent, but you get time to breathe and sort your finances out safely.

Who is eligible for mental health crisis breathing space

There is a special type of protection if you are receiving mental health crisis treatment. This option is designed for people who are unwell and find managing money too difficult while getting care. If you qualify, someone else can help arrange this support for you if you cannot speak to an adviser yourself. This form of protection lasts longer than standard plans. It continues for the full length of your ongoing treatment, plus an extra period afterward. You should check the exact requirements with a free debt advisory service to see if this fits your situation.

What debts are covered

The scheme covers many common types of problem debt. When you speak to a qualified debt adviser, they will look at all the money you owe. They can help you figure out which specific liabilities can be included in your plan. Some ongoing household expenses, such as rent, must still be paid as normal. Joint liabilities can also be handled, meaning protection can stretch to cover certain shared financial duties. Your adviser will check every detail to ensure you understand which accounts are paused and which ones require regular payments.

How creditors must act during breathing space

Once your application is processed and accepted, the rules change for the people and companies you owe. Creditors must follow strict guidelines to give you room to recover.

• Creditors must pause all enforcement action against you immediately upon notification.
• They are not allowed to contact you by phone, letter, or email to ask for repayments on covered accounts.
• They must stop adding any new interest, fees, or extra charges to your protected debts.
• Courts will pause related legal steps, such as certain housing repossession actions or enforcement visits.

How to apply for Breathing Space

Getting protected requires professional guidance. You cannot set up this scheme on your own. You must go through an approved expert who understands how the regulations work. Free help is available online, over the phone, or in person.

1. Find a free and confidential debt adviser through trusted guidance services like MoneyHelper.
2. Discuss your financial situation openly with the adviser, including all your income, assets, and what you owe.
3. Let your adviser submit the official application on your behalf if they agree it is the right choice for you.