How to apply for Breathing Space

Applies to: England & Wales

Who can start it

Only two kinds of organisation can put a Breathing Space in place: debt advice providers authorised by the Financial Conduct Authority, and local authorities that give debt advice. Free services such as StepChange, National Debtline and Citizens Advice can do it. You do not need to have had full debt advice first, but the adviser must explain whether Breathing Space suits you and what it means. If you are being asked to pay a fee just to start one, go to a free adviser instead.

What the adviser checks

• Where you live. You must live, or usually live, in England or Wales.
• Your debts. At least one must be a qualifying debt — most personal debts are. Which debts are covered.
• Other solutions. You must not be in a Debt Relief Order, an IVA (or an interim order before one), or bankruptcy. The adviser checks the Individual Insolvency Register and the Breathing Space register.
• The 12-month rule. You must not have had a standard Breathing Space that ended in the last 12 months. A previous Mental Health Crisis Breathing Space does not count, and the limit does not apply to the mental health crisis version. This limit does not apply to the mental health crisis version.
• Whether it is appropriate. The adviser must think you cannot pay, or are unlikely to be able to pay, your debts, and that a pause would help — for example while you look at a longer-term option.

What to have ready

• Your full name, date of birth and home address.
• Every debt you know about, with the creditor’s name, contact details and your account or reference number.
• If you are a sole trader and want business debts included, your trading name and business address.
• Recent letters, especially anything from a court or enforcement agent.
• A rough picture of your income and spending — the budget calculator gives you one.

What happens next

1. The adviser registers the Breathing Space with the Insolvency Service.
2. The Insolvency Service notifies each creditor you listed. An electronic notice counts as received the day it is sent; a posted one, four working days after posting.
3. From then, creditors must freeze interest and charges, pause enforcement and stop asking you for payment — what creditors can and cannot do.
4. Between days 25 and 35 the adviser carries out a midway review.
5. The standard Breathing Space ends after 60 days — what happens after.

Your side of the deal

While it runs you must keep paying ongoing costs such as rent or mortgage, council tax, utilities and insurance — Breathing Space is not a payment holiday. You must give accurate information, tell the adviser about any debt you missed or any change in your circumstances, not borrow more than £500, and stay in touch. Once the application is made it cannot be withdrawn, and a standard Breathing Space cannot be cancelled just because you ask. If you break these conditions, the adviser can cancel it.

Who finds out

The Breathing Space register is not public. It can be seen by you, your adviser and your creditors (only for their own debts). Starting a Breathing Space should not put a marker on your credit file, although creditors that report payments carry on reporting them.

Common questions

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