The Breathing Space scheme: 60 days free from creditor pressure

Once a debt adviser has entered you into the scheme, the Insolvency Service notifies your creditors. From that point, on qualifying debts, creditors must pause interest and charges, stop enforcement action (including bailiffs, court action and direct deductions from benefits or wages), and stop contacting you about the debt directly.

The pause does not write debt off. You still owe the money and must keep paying any ongoing liabilities that fall due during Breathing Space (e.g. current rent, current council tax).

Standard Breathing Space lasts up to 60 days. You can only have one in any 12-month period. Your debt adviser must carry out a midway review between days 25 and 35 to check you are still engaging with advice — if not, the protection can be cancelled.

Mental Health Crisis Breathing Space is for people receiving mental health crisis treatment. It lasts for as long as the treatment plus a further 30 days, with no 12-month restriction. An Approved Mental Health Professional (AMHP) must certify that you are receiving crisis treatment; you, a carer, the AMHP or another representative (such as a care co-ordinator, social worker or advocate) then apply to a debt adviser, who starts the Breathing Space.

Most personal debts qualify: credit cards, personal loans, overdrafts, store cards, utility arrears, council tax arrears (once instalments have fallen due or a reminder notice has been served), rent arrears, benefit overpayments and tax debts owed to HMRC.

Excluded debts include secured debts such as mortgages, hire purchase and conditional sale (though arrears that exist when you apply can be included), fines imposed by a court for an offence, debts incurred through fraud, confiscation orders, child maintenance and family court orders, student loans, Social Fund crisis or budgeting loans, Universal Credit advances, and damages for death or personal injury. See the Insolvency Service guidance for money advisers.