Breathing Space

What is Breathing Space?

Breathing Space, more formally known as The Debt Respite Scheme (England and Wales) Regulations 2020, was introduced on May 04 2021 to give individuals with problem debt the right to a statutory respite period. This respite freezes interest payments and suspends enforcement action for individuals for a specific timeframe, whilst the debtor works with a debt advisor to find an appropriate long-term debt solution.

There are two types of breathing space:

1. Standard Breathing Space

Available to individuals with problem debt. It gives them up to 60 days’ relief from any action, including enforcement action and contact from owed creditors. The period of 60 days’ breathing space also freezes any interest charges.

Breathing space can only be used/accessed once within one year (12-month period).

2. Mental health Breathing Space

The mental health crisis breathing space lasts the duration of the individual’s treatment plus an additional 30 days. Unlike the standard breathing space, there is no limit on access to the mental health breathing space; it can be used whenever an individual is in a mental health crisis.

Debts included in breathing space

Credit cards
Store cards
Personal loans
Pay day loans
Overdrafts
Utility bill arrears
Mortgage or rent arrears
Government debt such as council tax
Debt owed by an individual to a business or another individual

Debts not covered under breathing space

Where business or commercial debt relates only to the business and not the debtor personally.

How to get breathing space

Breathing space can only be initiated by: A local authority or a debt advice provider authorised by the FCA to provide debt counselling.

This includes organisations like StepChange Debt Charity, who offer the widest range of practical debt solutions of any provider in the UK. They provide expert advice either online or over the phone, and they’ll recommend a range of practical debt solutions based on your situation.

You cannot ask your creditors or enforcement company for breathing space or advise them that you have it. The creditor or enforcement company recovering your debts will only take instructions on this matter from the above personnel.

The importance of breathing space

What action needs to be taken by the creditor or claimant

The responsibility lies with the creditor to inform the enforcement agent that an individual (debtor) has been served with a breathing space notice.

Once an enforcement agent has been served by a breathing space notice, this will suspend any enforcement action against that debtor by another creditor.

Temporary suspension for enforcement activities

During the applied breathing space period, enforcement agents will not be able to:

Contact the debtor;
Give notice of enforcement;
Obtain a warrant or writ;
Take control of goods;
Visit the debtor’s home or business;
Serve notice of property possession;
Take possession of property;
Sell any of the debtor’s goods, unless the agent took them before the breathing space started.

If an enforcement agent has taken control of any goods by removing them and securing them elsewhere before a breathing space started, the goods may be sold during the breathing space and the costs of the sale deducted from the proceeds. However, fees accrued during the breathing space for storage of those goods cannot be charged either during the breathing space, or after it ends.