Key Takeaways
- The Breathing Space moratorium UK gives temporary legal protection from most creditor action, including interest and fees on qualifying debts for up to 60 days.
- Anyone applying for debt relief should act quickly as missing time limits can lead to continued creditor enforcement.
- Only eligible individuals with qualifying debts and who engage with an authorised debt adviser may apply for Breathing Space, so it is vital to check your circumstances.
- The scheme offers two types: a standard Breathing Space and a mental health crisis moratorium, each with different eligibility rules and protections.
- If you do nothing, creditors may resume enforcement, adding legal costs, interest and further stress to your situation.
- Certain debts such as court fines, student loans and child maintenance are not covered in Breathing Space, so seek advice to understand which debts receive protection.
- Creditors must cease legal action and communication during Breathing Space or risk breaching statutory duties, which could invalidate their claim or result in further penalties.
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For tailored, expert advice on Breathing Space or debt relief solutions, book a Free Consultation with our specialist team on 0207 459 4037.
What Legal Protections Does the Breathing Space Moratorium Provide for UK Borrowers?
Most borrowers are unaware that the Breathing Space moratorium UK offers up to 60 days of legal protection against creditor enforcement, with serious consequences for creditors who ignore these regulations. As financial pressure grows across England and Wales, understanding your rights under the Debt Respite Scheme is crucial to avoid escalating debt and unwanted enforcement.
The Breathing Space moratorium can halt debt collection, apply a statutory freeze on interest and charges, and suspend legal and enforcement actions for qualifying personal debts. Missing time limits or failing to engage early could mean enforcement continues or resumes, often with additional costs and stress.
If you are struggling with debts or facing creditor pressure, our expert solicitors can guide you through every stage of the Breathing Space process. To discuss your options and protect your financial position, call 0207 459 4037 or request a Free Consultation.
What Is the Breathing Space Moratorium UK and How Does It Protect Borrowers?
The Breathing Space moratorium is a formal, statutory protection created by the Debt Respite Scheme (Breathing Space) Regulations 2020. It is designed to shield individuals from creditors by introducing a temporary pause on most types of enforcement, interest, and extra fees associated with qualifying personal debts. The standard moratorium lasts up to 60 days, while a longer period applies for those receiving mental health crisis treatment.
Breathing Space provides a statutory freeze that stops creditor harassment, court proceedings, visits from bailiffs, and additional costs relating to protected debts. Once the scheme is activated, creditors are legally required to:
- Cease contact over covered debts, except for agreed repayment discussions.
- Suspend enforcement actions, including County Court Judgment (CCJ) applications.
- Refrain from starting bankruptcy or insolvency proceedings.
- Halt further interest and charges on qualifying debts.
Creditors who breach these statutory protections risk enforcement action, regulatory fines, and their claims being set aside by the courts. The moratorium gives borrowers in England and Wales a vital window to assess options and recover financial control without immediate threat of enforcement.
If you are uncertain which of your debts qualify or how to secure full legal protection, our lawyers provide tailored eligibility assessments and practical advice.
Who Can Apply for Breathing Space and What Are the Eligibility Criteria?
Individuals domiciled or ordinarily resident in England and Wales can apply for a Breathing Space moratorium, providing certain requirements are met. The scheme is not open to everyone, and strict rules apply on eligibility, scope, and frequency of use.
To qualify for standard Breathing Space, you must:
- Owe at least one qualifying personal debt to a UK creditor.
- Not have another active Breathing Space moratorium at the same time.
- Not be subject to a current Debt Relief Order, bankruptcy, or Interim Order.
- Apply via an authorised debt adviser (FCA-authorised or local authority).
- Be unable to repay debts in full as they fall due.
Most individuals can access the standard scheme once every 12 months unless they require the mental health crisis variant, which is more flexible.
If you are facing urgent creditor threats, such as bailiff action or a statutory demand, contact our expert lawyers immediately to assess your eligibility and safeguard your rights.
What Types of Debts Are Covered (and Excluded) by Breathing Space?
Breathing Space covers most personal unsecured debts, but certain debts are expressly excluded by law.
Included Debts
- Credit cards and unsecured personal loans
- Overdrafts and store cards
- Council tax arrears
- Utility bill arrears (electricity, gas, water)
- Rent arrears (not future rent)
- Benefit overpayments
- Arrears on mortgages or secured loans (principal mortgage not included)
Excluded Debts
- Student loans
- Court fines, compensation orders, and criminal penalties
- Child maintenance (CMS or court-ordered)
- Debts that arise after starting the moratorium
- Fully secured debts (except for arrears)
- Business debts (unless relating to an individual’s sole trading as a person, not a company or partnership)
Identifying whether each debt is covered is crucial, as creditors of excluded debts can continue to enforce while the moratorium protects qualifying debts only.
To understand more about potential legal outcomes for different types of debt disputes, you may also find our article on what happens if you lose in small claims court in the UK useful.
How Does Standard Breathing Space Differ from Mental Health Crisis Breathing Space?
Two main types of Breathing Space exist in England and Wales: the standard Breathing Space and a specialist mental health crisis moratorium.
Standard Breathing Space
- Lasts a fixed 60 days.
- Available once in a 12-month period unless you later qualify for mental health crisis protection.
- Requires regular engagement with an authorised debt adviser and compliance with reasonable requests (such as providing updated information and making affordable repayments).
Mental Health Crisis Breathing Space
- Lasts for the full period of mental health crisis treatment, plus 30 days after it ends.
- Can be entered multiple times if necessary.
- Initiated only with certification by an Approved Mental Health Professional (AMHP), usually under the Mental Health Act 1983.
- Those affected may not have to engage actively with a debt adviser during crisis treatment.
Both types of Breathing Space carry the same restrictions for creditors—suspending enforcement and communication—but the duration and requirements for ongoing participation differ significantly.
How to Apply for a Breathing Space Moratorium: Step-by-Step Guide
Applying for Breathing Space requires careful preparation and strict compliance with the statutory process. Missing any stage or delaying key steps may mean losing protection against creditors.
- Contact an Approved Debt Adviser
Only FCA-authorised advisers or local authorities can start a Breathing Space application on your behalf. - Assessment of Your Debts and Circumstances
The adviser evaluates your financial position and checks eligibility of each debt. - Application Submission
If eligible, your adviser submits your details via the Insolvency Service’s online portal, listing all debts and creditors. - Creditor Notification
The Insolvency Service notifies creditors. Legal protections take effect from the next calendar day. - Ongoing Engagement and Cooperation
Respond to the adviser’s requests for information and (if appropriate) maintain affordable repayments. - 30-Day Review
A mid-point check assesses eligibility, engagement, and whether debts remain protected. - Conclusion or Early Termination
Creditors are notified when the moratorium ends or is cancelled. Normal collection and enforcement activities can resume unless a new debt solution is implemented.
If you are facing creditor deadlines or enforcement action, consider booking a free eligibility review and application support with our expert lawyers.
What Legal Protections Are Triggered Once Breathing Space Is Approved?
Upon approval and formal notification of the Breathing Space moratorium, powerful statutory protections come into force. These include:
- Immediate halt on all communications about protected debts (outside of consented repayment discussions).
- Suspension of fresh legal action, such as new CCJ applications or statutory demands.
- Freeze on accruing interest, penalties, and late charges on included debts.
- Collection pauses—including stopping bailiff and High Court enforcement for covered debts.
- Bar on any further court orders or enforcement attempts for protected debts.
If a creditor fails to comply or continues enforcement, our team can enforce your rights and seek court orders or damages for unlawful conduct.
What Must Creditors Stop Doing During a Breathing Space Moratorium?
Creditors must take immediate action to comply with Breathing Space obligations for any debts covered by the moratorium. Specifically, creditors are required to:
- Stop all direct communications with you about payment, collection, or threats of action (unless strictly allowed by the regulations).
- Suspend all ongoing legal action, court claims, enforcement, and bailiff proceedings.
- Cease applying further interest, penalty fees, or charges to protected debts.
- Pause any continuous payment authority or automatic card deductions related to covered debts.
- Inform all agents, solicitors, and third parties about your protected status to ensure full compliance.
To see how our solicitors approach creditor breaches, you may find value in our enforcement dispute services.
What Happens When Your Breathing Space Moratorium Ends?
At the end of your Breathing Space moratorium, or if it is cancelled, creditor protections cease unless you transition to a new arrangement, such as a payment plan or formal insolvency process.
- Creditors are notified via the Insolvency Service portal.
- Collection, enforcement, and creditor communications can lawfully resume for any remaining debts.
- Interest, charges, and fees may continue to accrue from the date protections end.
- Court claims or enforcement activity paused during the moratorium may restart unless alternative solutions were agreed.
- If you established a revised repayment plan during Breathing Space, only creditors who accepted new terms may proceed under those arrangements.
If your protections are expiring and creditors are threatening renewed action, contact our team for guidance on next steps and extended protection strategies.
If you are navigating a business dispute as well as personal debt, you may also find our guide on how to get rid of a 50-50 business partnership in the UK helpful.
Can Creditors Challenge or Breach a Breathing Space Moratorium?
Creditors may only challenge a Breathing Space moratorium in tightly defined circumstances—such as where the debtor is ineligible, failed to engage, or wrongly included a debt.
Under Regulation 17 of the Debt Respite Scheme, creditors may apply for cancellation or variation if:
- The individual failed to comply with reasonable requests from the debt adviser.
- A debt has been wrongly included, or the debtor is not eligible.
- Enforcement restrictions cause “unfair prejudice” to the creditor.
If a creditor issues a formal challenge or contacts you during your moratorium, you have the opportunity to respond via your adviser or one of our solicitors. The court will decide whether to uphold, vary, or revoke your protections depending on the facts.
If you receive any court papers or threats of enforcement during an active Breathing Space, seek legal advice urgently. Our experts can intervene, defend your rights, and resolve creditor disputes.
What Laws and Deadlines Apply to Breathing Space Moratorium UK?
Breathing Space in England and Wales is governed by detailed statutory frameworks and strict regulatory timetables. The key legal sources and time limits include:
- Debt Respite Scheme (Breathing Space) Regulations 2020: This legislation governs the entire Breathing Space scheme: eligibility, application, adviser and creditor duties, and enforcement of the moratorium.
- Financial Conduct Authority (FCA) Rules: Applies for FCA-registered creditors in consumer finance and regulated debt activities.
- Mental Health Act 1983: Required for certification of mental health crisis Breathing Space.
- Limitation Act 1980: Enforcement periods for debts are suspended during a valid moratorium.
- Civil Procedure Rules (CPR): Pausing court proceedings for protected debts.
Key Deadlines:
- Standard Breathing Space: 60 days from creditor notification.
- Mental Health Crisis Moratorium: Duration of treatment plus 30 days post-discharge.
- Creditor compliance: Immediate from formal Insolvency Service notification.
- Frequency: Once every 12 months, unless mental health exception applies.
Meticulous attention to these deadlines by both debtors and creditors is essential to maintain protections and avoid adverse legal consequences.
What Do the Courts Say About Creditor Breaches During Breathing Space?
| Case | Facts | Outcome | Why It Matters |
|---|---|---|---|
| Re Stewart [2021] | Statutory demand served during a Breathing Space | Demand set aside; court enforced protections | Demonstrates courts will penalise creditor action during moratorium |
| Re Gallagher [2022] | Continued legal action after agent delay in notice | Proceedings stayed; warning to agent | Agents and creditors must act immediately upon notification |
| Re A Debtor [2023] | Mental health moratorium ignored during CCJ action | Enforcement reversed; costs awarded to debtor | Mental health protections are legally binding—even for existing CCJs |
Courts in England and Wales have established clear precedents: breaches of Breathing Space lead to swift intervention, reversal of unlawful actions, and costs risks for creditors who fail to comply. Both creditors and their agents are held to immediate, strict compliance once moratorium status is confirmed.
To explore how our team can defend your interests against creditor breach, see our expertise in creditor defence litigation.
Our Winning Approach to Breathing Space Moratorium UK
We offer practical, results-driven support for individuals seeking or defending a Breathing Space moratorium across England and Wales:
- Fixed-fee eligibility and debt reviews: Transparent, up-front fees—no hidden costs or surprises.
- Secure Go Transfer portal: Fast, confidential document uploads critical for urgent applications or dispute resolution.
- WhatsApp solicitor support: Real-time, accessible legal guidance to reduce your anxiety and keep you informed.
- Court-tested strategies: Robust, decisive intervention when creditors breach statutory duties—including urgent injunctions where required.
- Priority urgent applications: Immediate turnaround for clients facing imminent court or bailiff proceedings.
- Comprehensive creditor communications: We handle all notifications and escalation, minimising your exposure to stress.
- Defence of unfair prejudice claims: Vigorous defence in court or with regulators, protecting your statutory rights and financial position.
- No-win-no-fee arrangements: Where available for urgent enforcement cases, ensuring you can access justice even under financial pressure.
If you would like expert help managing the process or urgent intervention to keep creditors at bay, let our specialist solicitors take responsibility for your application and creditor negotiations.
Frequently Asked Questions
Can joint debts be included under Breathing Space in England & Wales?
Yes, joint debts such as joint loans or overdrafts can be included in an application. However, only the applicant receives legal protection, so creditors may still pursue the other borrower for the full amount.
How soon does creditor protection start after applying for Breathing Space?
Protections commence the day after your authorised adviser submits the application through the Insolvency Service. Creditors notified after this point must comply immediately—even if they claim they have not received the notice.
Will Breathing Space affect my credit rating?
The moratorium itself is not recorded on your credit report. However, if you cannot pay during this period, missed payments may still appear on your file; the moratorium delays, but does not remove, credit reporting consequences.
Can I apply for Breathing Space more than once?
For standard Breathing Space, you may only apply once in a 12-month period. There is no limit for mental health crisis Breathing Space if you have new AMHP certification.
What happens if I miss payments during the moratorium?
Enforcement is paused, but missed affordable payments can result in a review at 30 days and possible early cancellation if you fail to engage or cooperate with your adviser.
Are business debts ever covered by Breathing Space?
Generally excluded, unless you are a sole trader without a company or partnership structure, and the debts are personal rather than commercial in origin.
How do I prove eligibility for a mental health crisis moratorium?
A valid certificate from an Approved Mental Health Professional (AMHP), confirming you are under crisis treatment as set out by the Mental Health Act 1983, is required.
Can I include council tax arrears in my application?
Yes, council tax arrears are among the most commonly protected debts within Breathing Space and will qualify under the statutory scheme.
What action can I take if a creditor contacts me during Breathing Space?
Advise your adviser or one of our solicitors immediately, retain evidence of contact, and we will take steps to enforce your rights—including demands for statutory compliance, injunctions, or costs recovery.
Are all debt advisers able to initiate Breathing Space or only certain professionals?
Only advisers who are FCA-authorised or local authority debt teams are permitted to initiate Breathing Space legally. Beware of unregulated operators.
If you need clarity on your eligibility or protecting your legal rights, speak to our experts for confidential, fixed-fee advice.
Speak to a Breathing Space Moratorium Solicitor Today
Mastering the Breathing Space moratorium is vital when dealing with creditor threats in England and Wales. The protections on offer can halt legal action, pause extra charges, and allow you time to reorganise your finances—provided you act promptly and fulfil the eligibility criteria. Achieving a positive outcome, and avoiding costly enforcement or errors, often depends on guidance from lawyers who specialise in debt solutions and creditor defence.
Our specialist lawyers ensure every application is robust, all rights are preserved, and any creditor breaches are pursued quickly and effectively. If you require urgent support with your Breathing Space moratorium, or simply want clear, practical guidance on your next strategic steps, book a Free Consultation with our team. Call us on 0207 459 4037 or use our online contact form for immediate assistance.
