Breathing Space

Breathing Space, a valuable debt solution that offers temporary relief and protection for individuals facing financial difficulties.

It’s important to note that Breathing Space is a short-term solution designed to provide you with time and space to seek professional debt advice and work towards a sustainable long-term plan.

There are two types of Breathing Space available:

  1. Standard Breathing Space: This type of Breathing Space can be obtained by applying through debt advice. It offers protection for up to 60 days, with a mandatory review taking place between days 25 and 35. It allows you to take a step back, reassess your financial situation, and seek guidance to chart a path towards financial stability.

  2. Mental Health Crisis Breathing Space: Specifically designed for individuals undergoing mental health crisis treatment, this type of Breathing Space requires application through an Approved Mental Health Practitioner (AMHP). It offers protection for the duration of your treatment, plus an additional 30 days, providing crucial support during a challenging time.

Advantages Of Breathing Space

  • Freeze on Interest, Fees, and Charges: When you enter Breathing Space, most interest, fees, and charges on your debts will be temporarily halted. This gives you a break from accumulating additional financial burdens, allowing you to focus on finding a long-term solution.

  • Pause on Enforcement Action and Creditor Contact: Breathing Space also puts a pause on most enforcement actions taken by creditors and reduces contact from them. This respite gives you the breathing room needed to engage with debt advice and explore viable options to overcome your financial challenges.

Considerations Of Breathing Space

At the end of Breathing Space, the protections will end and the creditors you owe money to can:

  • start adding interest, fees and penalties to your debts
  • take action to enforce the debt
  • resume or start legal proceedings.