Breathing Space

Breathing Space (also called the Debt Respite Scheme) is a government scheme that gives you time to deal with your debts without pressure from creditors.

For up to 60 days, most interest, charges, and enforcement action are paused, giving you space to speak with a qualified debt adviser and decide on your next steps.

It’s a short-term solution designed to give you relief while you find a longer-term way forward, like an Individual Voluntary Arrangement (IVA), which can help you clear debt for good**.

What Debts Can Be Included in Breathing Space

Breathing Space can cover most unsecured debts, meaning money you owe that isn’t tied to an asset like your home or car.

Debts You CAN Include

Credit cards, store cards, and catalogue debt
Missed payments for personal and payday loans
Overdrafts
Utility bills (gas, electricity, water)
Council tax arrears
Rent arrears
Benefit overpayments
HMRC debts, like income tax or National Insurance

Debts You CANNOT Include

Secured loans or mortgages
Court fines
Child maintenance arrears
Student loans
TV licence arrears

Is Breathing Space Right for You?
You Could Qualify for an IVA Instead

Breathing Space gives you time to think and plan, but it’s only temporary debt relief. If your debts feel unmanageable, an Individual Voluntary Arrangement (IVA) might be the next step. It’s a formal agreement between you and your creditors, arranged and overseen by a licensed Insolvency Practitioner.

You could qualify for an IVA if you:

Have unsecured debts of around £7,000 or more
Receive a steady income from work (including self-employment) or a pension
Can manage a regular payment each month
Owe money to more than one creditor
Want a legally protected way to deal with your debts and work towards financial freedom**

Check if you qualify

How Does Breathing Space Work?

Breathing Space gives you up to 60 days of protection from most creditor contact, interest, and enforcement action. During this time, you’ll work with a qualified debt adviser to review your situation and find the best long-term solution for you.

The process typically involves:

Speak to a Debt Adviser - You must apply through a qualified debt adviser. They’ll check if you’re eligible and submit your application.
Protection Begins - Once approved, creditors must pause most recovery action and freeze interest and charges.
Plan Your Next Steps - Use this time to assess your finances, create a realistic budget, and explore options like an IVA or other debt solutions.
End of the Period - After 60 days, creditor contact and debt collections can restart unless you’ve moved into a formal solution like an IVA.

Breathing Space can be a huge relief when things feel overwhelming, but it’s designed to give you time, not to clear your debt. NDH Financial can help you take the next step towards becoming debt-free** once your breathing space ends.

Mental Health Breathing Space

If you’re receiving mental health treatment, you may qualify for a Mental Health Breathing Space instead of the standard version. This gives extra protection from creditors for the duration of your mental health crisis treatment, plus 30 days once it ends to get debt advice.

An approved mental health professional will need to confirm that you’re receiving crisis care before your application can be made. During this period, creditors must pause contact, freeze interest, and stop enforcement, giving you a payment holiday while you focus on your recovery.

Who Qualifies for Breathing Space?

Breathing Space is available to people who are struggling with debts. You don’t need to have a certain amount of debt, but you must meet a few key criteria.

You may qualify if you:

Live in England or Wales
Have at least one qualifying debt you’re finding hard to pay
Haven’t already had a Breathing Space in the last 12 months
Agree to work with a qualified debt adviser during the process

Not sure if you qualify?

Although IVAs are what we specialise in, we know this option isn’t right for everyone.

Book a call with one of our UK debt consultants today to talk through your situation. We’ll help you understand your options and find a suitable way to manage your debts.

Book a No Obligation Consultation

Will Creditors Accept Your Breathing Space?

Once Breathing Space begins, creditors have to follow the rules set out in this government-backed scheme. This means they must pause most contact, stop applying interest and charges, and put any enforcement action on hold for the full period.

However, creditors can still:

Receive updates about your case from your debt adviser
Raise objections if they believe a debt isn’t eligible for Breathing Space

If they do object, your debt adviser will review the situation and decide whether the protection should continue.

It’s important to remember that Breathing Space is temporary. When it ends, your creditors can start contacting you again unless you move into a longer-term solution, like an IVA, which gives lasting legal protection and can write off unaffordable debt**.

Pros & Cons of Breathing Space

Pros	Cons
Stops most creditor contact and enforcement action for up to 60 days	Only lasts up to 60 days (or while receiving mental health crisis treatment)
Freezes interest and charges during the protection period	Creditors can start contacting you again once it ends
Gives you time to get professional advice and plan your next steps	Doesn’t reduce or write off any debt
Helps reduce stress while you explore longer-term debt solutions	You can’t include some debts, like student loans or court fines

Looking for a More Permanent Way to Deal with Debt?

For many people who begin with Breathing Space, an Individual Voluntary Arrangement (IVA) becomes the natural next step, particularly if their unsecured debts total around £7,000 or more.

An IVA is a formal agreement made with the help of a licensed Insolvency Practitioner. It gives you legal protection from your creditors and sets out a clear plan to repay what you can afford over time.

With an IVA, you can benefit from:

Full legal protection from creditor action
All interest and charges frozen from approval
A set term, usually lasting 5-6 years
Remaining qualifying debt cleared once it’s complete**
One manageable monthly payment based on your income and expenses

Learn About IVAs

What’s the difference between an IVA and Breathing Space?

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors to repay what you can afford over a set period, usually 5-6 years. It’s arranged and managed by a licensed Insolvency Practitioner, and once complete, any remaining qualifying debt is written off**.

Both Breathing Space and IVAs can help you manage problem debt, but they work very differently.

	Breathing Space	Individual Voluntary Arrangement (IVA)
Legal Status	Formal but temporary	Formal & legally binding
Creditor protection	Contact and enforcement paused for up to 60 days	No contact or legal action once approved
Interest & charges	Frozen temporarily	Frozen from approval
Duration	Up to 60 days	Fixed 5-6 years
Debt write-off	None - debts remain after the period ends	Remaining qualifying debt written off**
Creditor approval	Not required	75% approval binds all creditors
Legal action risk	Creditors paused temporarily	You’re legally protected throughout
Minimum debt	No minimum amount	Typically £7,000+ in unsecured debt
Supervision	Managed by a qualified debt adviser	Supervised by a licensed Insolvency Practitioner
End result	Creditors can resume contact after 60 days	Debt cleared after completion**

Which is better for my credit score, Breathing Space or an IVA?

Both Breathing Space and IVAs can affect your credit score, but in different ways.

When you start Breathing Space, the arrangement itself isn’t recorded on your credit file. However, creditors may still mark your accounts as missed or defaulted during the 60-day period, if you do not make the required payments, which can lower your credit score. Once Breathing Space ends, those debts will remain on your file until they’re settled or included in a formal solution like an IVA.

An IVA will appear on your credit file for six years from the start date. During this time, your ability to get credit will be limited. However, once your IVA is complete and your debts are written off**, you’ll have a clean slate to rebuild your credit over time.

Breathing Space Ending Soon? Consider an IVA

Many people start with Breathing Space to get some immediate relief, only to realise it’s a temporary fix. After the 60-day period ends, they often find that:

Creditors begin contacting them again
Interest and charges start building back up
There’s still no clear end date in sight
Their overall debt hasn’t reduced

The good news is you can move from Breathing Space to an IVA at any time.

Why People Make the Switch

Get full legal protection from creditors
Stop interest and charges for good
Gain a fixed end date
Write off remaining qualifying debt once complete**
Replace short-term relief with a long-term solution

Because Breathing Space is temporary, you can transition into an IVA and turn short-term breathing room into a lasting plan for becoming debt-free**.

Apply Today

If your debts feel overwhelming and you need time to get things back under control, contact NDH Financial for a no-obligation consultation to see if an IVA could help.

Call us on 0800 0029051 or apply below.

Apply Now

An IVA may not be suitable in all circumstances. Fees apply. Your credit rating may be affected

Taking Breathing Space: FAQS

You’ll need to apply for Breathing Space through an authorised debt adviser. They’ll assess your situation, check that you qualify, and submit the application on your behalf.

If you’re considering Breathing Space, talk to NDH Financial, and we can also help you explore longer-term options like an IVA.

While Breathing Space is active, most enforcement action, including bailiff visits, must stop. However, once the 60-day period ends, creditors can resume recovery unless you enter a formal arrangement like an IVA, which provides full legal protection.

Most unsecured debts can be included, like credit cards, loans, overdrafts, and council tax arrears. However, secured debts, student loans, and court fines can’t be covered. A qualified adviser will confirm which debts are eligible in your case.

Once the 60 days are over, creditor contact and interest can start again unless you move into a long-term debt solution like an IVA. NDH Financial can help you review how you will manage your debt after the Breathing Space ends, and set up an IVA plan that leads to lasting financial stability.

Breathing Space is mainly designed for personal debts, not business-related ones.

However, if you’re a sole trader and your business debts are personally owed, for example, business loans or tax arrears in your own name, these can be included.

Breathing space can be used for a joint debt, but it only protects your share of the debt.

If you have a joint account or shared loan, your creditors can still contact the other person named on the debt unless they also apply for Breathing Space.

In many cases, it’s best for both people to seek advice and apply separately to make sure full protection is in place.

Breathing Space can pause action related to rent arrears for up to 60 days, which may temporarily delay eviction proceedings. However, it doesn’t cancel or clear the rent you owe, and your landlord can still start new eviction proceedings after the period ends. If you’re at risk of eviction, it’s important to speak to a qualified debt adviser as soon as possible.