How to ask for Breathing Space with debt?

H1 – How to ask for Breathing Space with debt

If you’ve been struggling to keep up with repayments, you may be looking for ways to regain control of your finances and reduce pressure from creditors. One option you may have heard about is the Breathing Space scheme.

This guide explains what Breathing Space is, how it works and how to apply. It also covers which debts are eligible, what breathing space can and cannot do for you, and what alternatives may be available if you’re not eligible.

Before reading on, if you’re struggling to keep up with repayments on your Moneyboat loan, please contact us as soon as possible. And if it’s with another lender or provider, please speak to them.

In this guide:

• What is the Breathing Space scheme?
• What debts are eligible for Breathing Space?
• What Breathing Space can and cannot do
• What are the advantages of Breathing Space?
• How to apply for Breathing Space
• Are there any alternatives?
• Breathing Space FAQs
• Is Breathing Space the right option?

What is the Breathing Space scheme?

The Breathing Space scheme (sometimes called the debt respite scheme) is a government-backed initiative designed to give people temporary protection from creditor action while they get debt advice.

If you’re accepted, most enforcement action and contact from creditors must stop, with interest and charges on qualifying debts frozen. This gives you time to seek professional advice and put a longer-term solution in place.

A standard Breathing Space lasts for up to 60 days. However, if you’re receiving mental health treatment, you may be eligible for mental health Breathing Space, which lasts for the duration of your treatment plus an additional 30 days.

If you’re approved for the Breathing Space scheme:

1. Enforcement action must stop
2. You cannot be contacted about the debts by creditors
3. Interest, fees, and charges are paused

What debts are eligible for Breathing Space?

Understanding which debts can and cannot be included is an important part of deciding whether debt Breathing Space is right for you.

Debts that can usually be included:

• Credit cards and store cards
• Short-term loans
• Personal loans and overdrafts
• Catalogue debts
• Utility bill arrears
• Rent arrears
• Council tax arrears

Debts that cannot usually be included:

• Secured debts such as mortgages (although arrears may be included)
• Student loans
• Child maintenance and child support arrears
• Court fines
• Personal injury compensation debts
• Debts taken out after Breathing Space begins

A qualified debt adviser can help you understand exactly which debts are eligible before you apply for Breathing Space.

What Breathing Space can and can’t do

Breathing Space offers protection, but it’s not a debt solution on its own.

What Breathing Space can do:

• Pause interest, charges and fees on eligible debts
• Stop most creditor contact
• Prevent bailiff action on included debts
• Give you time to seek advice and explore solutions

What Breathing Space cannot do:

• Write off your debts
• Stop secured creditors enforcing security in all cases
• Prevent contact about debts not included
• Automatically fix long-term affordability issues

This is why it’s important to use the Breathing Space period to put a realistic debt plan in place. Your adviser may also discuss other options with you, depending on your circumstances.

What are the advantages of Breathing Space?

Breathing Space has various advantages for those struggling. It provides temporary relief from creditor pressures as well as offering a pause on interest and additional charges.

This temporary period gives debtors time to plan and assess their next steps, without the looming pressure of creditor demands. With breathing room, debtors can speak with professional advisors and formulate a plan to move forward.

How to apply for Breathing Space

If you’re looking to apply for Breathing Space, you must go through a regulated debt adviser. An adviser will be able to confirm your eligibility, as well as check which of your debts can be included.

To put you forward for a Breathing Space application, your advisor must be confident that it’s going to benefit you and that you’ll enter into a debt solution.

While it’s free to apply for Breathing Space, many debt advisors charge fees, so bear this in mind when you begin your search for one.

To be eligible to apply for breathing space, you must:

• Currently live in England or Wales.
• Not have relied on the Breathing Space scheme in the previous 12 months (unless it was related to a mental health crisis).
• Not be an undischarged bankrupt, have a debt relief order, an interim order or an Individual Voluntary Arrangement.

After your Breathing Space ends, your creditors can contact you again and take further action to retrieve the debts. So, in the relief period, it’s important to ensure a longer-term debt management plan is put in place. Our guide on how to get out of debt is filled with handy advice to help you get started.

Are there any alternatives?

Everyone’s situation is different and you may not be accepted for the Breathing Space scheme, but there are other debt solutions that may help.

1. Debt management plans: This is an agreement you’ll make with the creditor designed to help you pay back the money owed at a manageable rate. These can be arranged through both debt management companies (authorised by the Financial Conduct Authority) and certain charities too.

Learn more about debt management plans.

2. Individual Voluntary Arrangements: This is an agreement you make with your creditors to pay off your debts over a certain period. You’ll commit to making timely payments to an insolvency practitioner, who then divides the money among creditors.

Learn more about Individual Voluntary Arrangements.

3. Debt relief orders: This may be suitable if you owe less than £50,000, don’t own a home, and don’t have much spare income (usually less than £75 a month). With debt relief orders, you’ll cease to make payments (including interest) for 12 months. If your financial situation doesn’t improve within this period, the debts may be written off.

Learn more about debt relief orders.

Breathing Space FAQs

Can bailiffs come during Breathing Space?

No. If a debt is included in your Breathing Space, bailiff enforcement action must stop for the duration of the protection period.

What debts cannot be included in Breathing Space?

Debts such as student loans, court fines, child maintenance and secured lending like mortgages aren’t usually included. Your debt adviser can confirm eligibility for your personal situation.

Can I apply for Breathing Space myself?

No. You must apply through a regulated debt adviser who submits the application on your behalf.

Does Breathing Space affect my credit score?

Breathing Space itself doesn’t appear on your credit file, but missed payments and arrears already recorded may remain.

Is Breathing Space the right option?

The Breathing Space scheme can be a valuable tool if you need short-term relief from debt pressure while you explore longer-term solutions. It doesn’t erase debt, but it can give you time, clarity and support.

If you’re unsure what to do next or worried about your financial situation, free help is available from organisations such as StepChange, Citizens Advice, MoneyHelper and National Debtline. Visit our full list of third-party support organisations for additional resources.

For more guidance on borrowing, debt and financial wellbeing, explore the Moneyboat blog.