Debt Solutions UK 2026 — DMPs, IVAs, DROs, Bankruptcy and Breathing SpaceBreathing Space Debt Respite Scheme UK: 60-Day Protection from Creditors
How to use the Breathing Space scheme in England and Wales to stop creditor contact and freeze interest for 60 days while you find a debt solution. Includes eligibility and how to apply.
Breathing Space gives people in debt legal protection from their creditors for 60 days while they get advice and find a solution. During this time, interest and charges are frozen and enforcement action is paused. The scheme started in May 2021 and applies in England and Wales.
For the wider cluster covering DMPs, IVAs, DROs, bankruptcy, creditor protection and formal debt routes, use the main Debt Solutions UK hub.
What Breathing Space Does
| Protection | Standard Breathing Space | Mental Health Crisis Breathing Space |
|---|
| Duration | 60 days | Duration of crisis treatment + 30 days |
| Interest frozen | ✓ | ✓ |
| Charges frozen | ✓ | ✓ |
| Creditor contact stopped | ✓ | ✓ |
| Enforcement paused | ✓ | ✓ |
| County Court action paused | ✓ | ✓ |
| Bailiff action paused | ✓ | ✓ |
| Bankruptcy petitions paused | ✓ | ✓ |
Two Types of Breathing Space
Standard Breathing Space
For anyone struggling with debt who needs time to find a solution.
| Feature | Detail |
|---|
| Duration | 60 days exactly |
| How to access | Through debt advice provider |
| Frequency | Once per 12 months |
| Requirements | In debt, not already in insolvency |
Mental Health Crisis Breathing Space
For people receiving mental health crisis treatment.
| Feature | Detail |
|---|
| Duration | Length of treatment + 30 days |
| How to access | Through approved mental health professional |
| Frequency | No limit |
| Requirements | Receiving mental health crisis treatment |
Eligibility for Standard Breathing Space
You Can Apply If:
- You live or usually reside in England or Wales
- You have problem debt(s)
- You’re not in an existing debt solution (IVA, DRO, bankruptcy)
- You haven’t had Breathing Space in the last 12 months
- You can’t pay your debts as they fall due, or will be unable to
You Cannot Apply If:
- You’re already in bankruptcy, IVA, DRO, or other insolvency
- You had Standard Breathing Space in the last 12 months
- You live in Scotland or Northern Ireland (different schemes exist)
- Your debts are all excluded (see below)
Debts Covered
Included Debts
| Debt Type | Covered |
|---|
| Credit cards | ✓ |
| Personal loans | ✓ |
| Overdrafts | ✓ |
| Store cards | ✓ |
| Catalogue debts | ✓ |
| Council tax arrears | ✓ |
| Utility arrears (gas, electric, water) | ✓ |
| Rent arrears | ✓ |
| HMRC debts (tax, NI) | ✓ |
| Benefit overpayments | ✓ |
| Payday loans | ✓ |
| Hire purchase (if not surrendering goods) | ✓ |
| Buy now pay later | ✓ |
Excluded Debts
| Debt Type | Why Excluded |
|---|
| Student loans | Statutory exemption |
| Child maintenance | Child welfare priority |
| Court fines | Criminal sanction |
| Confiscation orders | Proceeds of crime |
| Damages for personal injury | Compensation for harm |
| Debts from fraud | No protection for fraud |
| Social Fund loans | Government loans |
| Advance payments of benefits | Government loans |
Partially Excluded
| Debt Type | What’s Covered | What’s Not |
|---|
| Secured debts | Interest/charges frozen | Repossession can continue |
| Ongoing services | Past arrears | Future bills still due |
| Joint debts | Your share protected | Co-debtor still liable |
What Happens During Breathing Space
What Creditors Must Do
| Action | Required |
|---|
| Stop charging interest | ✓ Yes |
| Stop adding fees/charges | ✓ Yes |
| Stop contacting you for payment | ✓ Yes |
| Pause court action | ✓ Yes |
| Pause enforcement/bailiffs | ✓ Yes |
| Remove default if added during BS | ✓ Yes |
| Acknowledge receipt of notification | ✓ Yes |
What Creditors Can Still Do
| Action | Allowed |
|---|
| Send confirmation of Breathing Space | ✓ |
| Continue essential contact (statements) | ✓ |
| Continue repossession of secured property | ✓ |
| Apply for County Court Judgment (CCJ) | ✗ |
| Apply to make you bankrupt | ✗ |
| Send bailiffs | ✗ |
| Contact you demanding payment | ✗ |
What You Must Do
| Responsibility | Details |
|---|
| Engage with debt advice | Meet with adviser midway through |
| Pay ongoing bills | Breathing Space covers arrears, not new bills |
| Tell adviser of changes | New debts, income changes |
| Start repaying problem debts | If you can afford to |
| Follow debt solution | Work toward long-term answer |
How to Apply
| Provider | Contact | Service |
|---|
| StepChange | 0800 138 1111 | Full debt advice, can apply for BS |
| National Debtline | 0808 808 4000 | Advice and BS applications |
| Citizens Advice | 0800 144 8848 | Local and national advice |
| PayPlan | 0800 280 2816 | Free debt advice |
| Money Helper | 0800 138 7777 | Signposting to advisers |
All services are free.
Step 2: Initial Assessment
The debt adviser will:
- Review your income and expenditure
- List all your debts
- Check you’re eligible for Breathing Space
- Confirm it’s appropriate for your situation
- Explain the conditions and responsibilities
Step 3: Application
If appropriate, the adviser:
- Enters your details on the Insolvency Service system
- Lists all eligible debts
- Submits the application
Step 4: Notification
Once approved:
- Start date is recorded
- All listed creditors are notified
- You receive confirmation
- 60-day clock starts
Step 5: Midway Review
After about 30 days:
- Meet with adviser again
- Review progress toward a solution
- Confirm ongoing engagement
- Address any issues
Step 6: End of Breathing Space
At 60 days:
- Protection ends automatically
- Creditors can resume normal contact
- You should have a debt solution in place or in progress
Timeline
| Day | What Happens |
|---|
| Day 0 | Application submitted by adviser |
| Day 1 | Breathing Space starts, creditors notified |
| Days 1-29 | Protection in place, work on debt solution |
| Day 30 | Midway review with adviser |
| Days 31-59 | Continue working toward solution |
| Day 60 | Breathing Space ends |
| Day 61+ | Debt solution should be in place |
If Creditors Break the Rules
What to Do
- Keep records of all contact
- Tell your debt adviser immediately
- Adviser contacts creditor to remind them
- Report to Insolvency Service if it continues
- Complain to Financial Ombudsman if appropriate
Creditor Penalties
Creditors who break Breathing Space rules may face:
- Court orders to comply
- Compensation orders to you
- Regulatory action from FCA
- Increased costs if court involved
When Breathing Space Ends Early
Reasons for Early Cancellation
| Reason | Details |
|---|
| You don’t engage | Miss midway review or ignore adviser |
| Can afford to pay | Circumstances improve significantly |
| Enter debt solution | IVA, DRO, bankruptcy starts |
| Misleading information | Gave false details |
| You request it | Decide to end early |
| New debts | Significant new borrowing |
What Happens After Cancellation
- Creditors notified immediately
- Interest and charges restart
- Enforcement can resume
- Contact from creditors restarts
After Breathing Space: Next Steps
Debt Solutions to Consider
| Solution | Best For | Duration |
|---|
| Debt Management Plan | Can afford reduced payments | Until cleared |
| IVA | Homeowners, £10k+ debt | 5-6 years |
| Debt Relief Order | Low income, few assets, under £30k | 12 months |
| Bankruptcy | Large debts, few assets | 12 months |
| Full and final settlement | Lump sum available | One-off |
| Token payment DMP | Very low income | Until circumstances change |
Working with Your Adviser
During and after Breathing Space, your adviser will:
- Explain all suitable options
- Help you choose the right solution
- Support applications where needed
- Provide ongoing support
Mental Health Crisis Breathing Space
How It Works
| Feature | Detail |
|---|
| Who applies | Approved Mental Health Professional (AMHP) |
| Trigger | You’re receiving crisis treatment |
| Duration | Length of crisis treatment + 30 days |
| End date | Not fixed at start |
| Review | 30 days after crisis treatment ends |
Who Can Start It
- Approved Mental Health Professionals
- Crisis team members
- Mental health nurses (approved)
- Care coordinators (in some cases)
No Limit on Use
Unlike Standard Breathing Space, Mental Health Crisis Breathing Space:
- Has no 12-month restriction
- Can be used multiple times
- Lasts as long as needed
- Provides strongest protection
Breathing Space vs Other Options
Comparison with Debt Solutions
| Feature | Breathing Space | DMP | IVA | DRO |
|---|
| Stops interest | 60 days | Sometimes | Yes | Yes |
| Stops contact | 60 days | Informal | Yes | Yes |
| Debt written off | No | No | Partial | Yes |
| Duration | 60 days | Years | 5-6 years | 12 months |
| Credit impact | Temporary | Long-term | 6 years | 6 years |
| Repeat use | Once/year | Unlimited | Limited | Once/6 years |
When Breathing Space Is Right
| Use Breathing Space If | Don’t Use If |
|---|
| Need time to think | Already know your solution |
| Facing bailiff action | Can afford payments |
| Threatened with court | About to start IVA/DRO |
| Overwhelming contact | Debts are manageable |
| Need to stabilise | Only have excluded debts |
Impact on Your Credit File
| During Breathing Space | After Breathing Space |
|---|
| Creditors should not add new negative markers for missed payments | Normal credit reporting resumes |
| Existing negative markers remain on your file | The Breathing Space itself is noted on the Insolvency Register (public record) |
| Applications for new credit may reference the Breathing Space | Entry is removed from the Insolvency Register when Breathing Space ends |
Summary
Breathing Space provides 60 days of legal protection from creditor action, giving you time to:
- Stop overwhelming contact from creditors
- Freeze interest and charges on most debts
- Pause enforcement and court action
- Find a lasting debt solution with free advice
It’s not a solution itself — it’s a pause that lets you work toward one. Contact a free debt advice service to see if Breathing Space is right for you and to start the application process.
The scheme represents a significant improvement in debtor protection, but should be used as a stepping stone to a permanent solution rather than just a delay.