Breathing Space

Two types of protection

A standard breathing space can last up to 60 days. A debt adviser checks eligibility and whether it is appropriate, then starts the protection through the electronic service. It is not activated by the individual simply informing a creditor that they need time.

A mental health crisis breathing space has a different route and duration. It depends on qualifying crisis treatment supported by the required Approved Mental Health Professional evidence; having a mental health diagnosis alone is not sufficient. Protection can continue during that treatment and for a further 30 days.

What changes for creditors?

For debts covered by the scheme, most enforcement and collection contact must pause and most interest and charges stop. Creditors need to identify the protected debts and handle notices promptly. Exceptions, permitted communications and court permissions make the detailed guidance important.

Ongoing liabilities and excluded debts remain relevant. The individual should continue meeting current commitments where required and work with the adviser. The protection does not make a new debt disappear or establish that an existing claim is correct.

Advice, review and information

For standard protection, the individual must engage with the adviser, provide accurate information and report relevant changes. There is a midway review. A creditor can request review on the statutory grounds, so protection should not be treated as beyond challenge.

The mental health crisis route has separate confirmation and review arrangements through the nominated contact. Health information is supplied through the authorised process; there is no reason to publish it or give it to every creditor.

Use the time to reach a plan

The adviser can examine affordability, benefits, priority bills and alternatives such as an IVA, DRO, bankruptcy or a repayment agreement. The right next step depends on the full circumstances, including any threat to the home or essential services.

When protection ends, ordinary recovery rights can generally resume unless another legal solution provides protection. A sustainable next step matters more than the temporary pause. The scheme’s private electronic register should not be confused with a public insolvency register.

The process, at a glance

1. Debt adviser assessment. Check qualifying debts, eligibility and appropriateness.Process stage — practical timing varies
2. Protection starts. Relevant creditors are notified and must apply the scheme protections.Process stage — practical timing varies
3. Develop a debt plan. Review income, essential spending, debts and possible longer-term solutions.Process stage — practical timing varies
4. Standard midway review. The adviser reviews a standard breathing space; the crisis route follows different checks.Statutory milestone — check its trigger and exceptions
5. Protection ends. The crisis route instead lasts for qualifying treatment plus 30 days; another solution may follow.Statutory milestone — check its trigger and exceptions