BREATHING SPACE UK - Breathing Space Debt Management | Breathing Space Insolvency Service

What is the Breathing Space Scheme?

Breathing Space (Debt Respite Scheme) is one of many products used to help those currently struggling with debt. People will be given legal protection for 60 days, with most interest and penalty charges frozen and enforcement action halted. Breathing space should ideally be used to as a temporary solution whilst you find a long-term solution to unaffordable debt.

The Advisors will discuss your current situation and advise you on the best solution for you to manage your debt. If you qualify for Breathing Space and this is the right solution for you they may refer you to a company to administer the Debt Respite Scheme.

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What are the eligibility criteria for Breathing Space Scheme?

To qualify for a breathing space, debtors will have to meet certain conditions. They must be in problem debt and live in England or Wales and NOT have any of the following:

A Debt Relief Order (DRO)

An individual Voluntary Agreement (IVA)

An interim order

An undischarged bankruptcy

Not already be in a breathing space or have had one in the past 12 months.

Debts qualifying for Breathing Space include

Credit card / store cards

Personal Loans

Payday Loans

Overdrafts

Utility bill arrears

Mortgage rent / arrears

Overdue council tax

PCN and parking tickets

Stop Creditor Action

Creditors will receive a notification that a debt owed to them is in breathing space and will be required to drop all action relating to that debt for the period the breathing space is in force. This includes stopping any interest, fees, penalties or charges and ceasing any enforcement or recovery action.

The advisor’s will speak to you about your options with regards to managing your debt and may refer you to a partner depending on your circumstances including getting Breathing Space.