What is a Breathing Space Moratorium?
A Breathing Space Moratorium is a legal scheme in the UK designed to give people struggling with problem debt a temporary pause from most types of debt enforcement action. Introduced under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) Regulations 2020, this tool can provide crucial relief if you’re facing mounting pressure from creditors or bailiffs.
How does Breathing Space work?
When you enter a Breathing Space Moratorium, most creditors – including bailiffs – must stop contacting you, chasing payment, or taking enforcement action on qualifying debts. This means bailiffs cannot visit your home, remove goods, or take further steps to collect debts covered by the moratorium. The aim is to give you time to get professional debt advice and start working on a long-term solution, such as a repayment plan or another debt management option.
Who can apply for Breathing Space?
Breathing Space is available to individuals living in England or Wales who are unable to pay their debts. You must apply through a qualified debt adviser, who will assess your situation and submit the application on your behalf if appropriate. There are two types of Breathing Space:
- Standard Breathing Space: Open to most people with problem debt, lasting up to 60 days.
- Mental Health Crisis Breathing Space: Available if you’re receiving mental health crisis treatment, with protections lasting for the duration of treatment plus 30 days.
What protections does Breathing Space offer?
During the moratorium period:
- Creditors and bailiffs must freeze most interest, fees, and charges on qualifying debts.
- They cannot take new enforcement action, contact you about payment, or continue existing action (such as court proceedings or bailiff visits).
- Your protection covers most personal debts, including credit cards, personal loans, council tax arrears, and utility bills.
It’s important to note that you must continue to pay ongoing liabilities, like rent and current utility bills, during Breathing Space. Not all debts are covered – for example, secured debts like mortgages are generally excluded, although arrears may be protected.
What happens after Breathing Space ends?
Once the moratorium period finishes, creditors can resume enforcement action if you haven’t reached a new agreement or solution. That’s why it’s vital to use this time to seek debt advice and explore your options for longer-term help.
If you’re looking for broader information on how to stop or delay bailiff action, you may also want to read about how to stop bailiffs.
Breathing Space is a valuable legal safeguard if you need time to get back on track with your finances, free from the immediate threat of bailiff visits and creditor pressure.
How Does a Breathing Space Moratorium Work?
When you are struggling with problem debts, a Breathing Space Moratorium can offer vital protection from creditors and bailiffs while you get back on your feet. Here’s how the process works, what debts are included, and what you can expect if you apply.
What Happens When a Breathing Space is Granted?
Once a Breathing Space Moratorium is approved, most creditor action against you must pause for a standard period of 60 days. This includes stopping most enforcement proceedings, interest, fees, and charges on qualifying debts. The aim is to give you time to seek debt advice and consider your next steps without the pressure of immediate enforcement.
If you are experiencing a mental health crisis, you may be eligible for a Mental Health Crisis Breathing Space, which lasts for the duration of your treatment plus 30 days.
The rules and protections are set out in The Debt Respite Scheme (Breathing Space) Regulations 2020.
Step-by-Step: How the Moratorium Works
- Application: You must apply through an FCA-authorised debt adviser or local authority. They will assess your situation and submit your application if you are eligible.
- Notification: Once your application is accepted, your creditors and any enforcement agents (such as bailiffs) are notified.
- Protection Begins: From the start date, creditors must freeze most interest, fees, and charges on the debts included. They are also prevented from contacting you to demand payment or start new enforcement action.
- Ongoing Review: Your adviser will review your circumstances partway through the moratorium to ensure you are complying with the rules, such as engaging with debt advice.
- Moratorium Ends: After 60 days (or longer if it’s a mental health crisis moratorium), the protections end. You may then need to consider other debt solutions or make arrangements with your creditors.
Which Debts Are Covered?
Most personal debts are included, such as:
- Credit cards and personal loans
- Overdrafts
- Store cards
- Utility arrears (gas, electricity, water)
- Council tax arrears
- Rent arrears
However, certain debts are excluded. These typically include:
- Secured debts (like mortgages, but only the secured part)
- Court fines (criminal penalties)
- Child maintenance or child support payments
- Student loans
For a detailed list of what is and isn’t covered, you can review the Debt Respite Scheme (Breathing Space) Regulations 2020.
What Must Creditors and Bailiffs Do During Breathing Space?
During the moratorium period, creditors and bailiffs must:
- Stop all new court action or enforcement for covered debts
- Pause any existing enforcement action, including bailiff visits
- Freeze most interest, fees, and charges on the qualifying debts
- Not contact you to demand repayment (except for certain legal notifications)
Bailiffs (enforcement agents) must not visit your home, seize goods, or continue with any enforcement action for debts included in the moratorium. If a bailiff has already taken control of goods, further action must be paused for the duration of breathing space.
If you are facing bailiff action and want to explore other ways to pause enforcement, you can also look into legal options to stay bailiff enforcement.
How to Apply for Breathing Space
To apply, you need to speak to a qualified debt adviser. They will check your eligibility, explain your options, and submit the application on your behalf. You cannot apply directly by yourself.
After applying, you can expect:
- Confirmation from your adviser about your application status
- Written notification from creditors and bailiffs that action has been paused
- Continued support from your adviser to help you find a long-term solution
It’s important to keep in touch with your adviser and follow any instructions, as failing to do so may end your breathing space early.
A Breathing Space Moratorium is a powerful tool to help you regain control over your finances and protect yourself from immediate enforcement. For the full legal details, you can refer to the Debt Respite Scheme (Breathing Space) Regulations 2020. If you need more information about pausing bailiff action by other means, see our guide on legal options to stay bailiff enforcement.
Rights and Protections During a Breathing Space
During a Breathing Space moratorium, you are granted important legal rights that protect you from most forms of debt enforcement, including bailiff (enforcement agent) action. These protections are set out in the Breathing Space (Debts) (England and Wales) Regulations 2020, which detail exactly what creditors and enforcement agents can and cannot do while you are in a Breathing Space.
Your Rights During Breathing Space
Once your Breathing Space begins, creditors and their agents (including bailiffs) must pause almost all enforcement action for the period of the moratorium. This means:
- No new enforcement action can be started against you for debts included in the Breathing Space.
- Creditors must freeze interest, fees, and charges on those debts.
- Bailiffs cannot visit your home or seize your goods.
- You should not receive letters, calls, or visits demanding payment for protected debts.
These protections last for 60 days in a standard Breathing Space, or for as long as you receive mental health crisis treatment in a Mental Health Crisis Breathing Space.
Bailiff Action: What Must Stop
Bailiffs are legally required to stop all enforcement activity relating to debts covered by the Breathing Space. This includes:
- Visiting your home or business to collect payment or seize goods.
- Removing or selling any of your belongings for the purpose of repaying a debt.
- Sending notices or threats of enforcement for protected debts.
If a bailiff is already involved, they must be notified of your Breathing Space status and cease action immediately. Any goods already taken but not yet sold must be returned.
Protections for Vulnerable Debtors
If you are considered vulnerable – due to age, disability, mental health, or other circumstances – there are additional protections for vulnerable debtors in place. These are designed to ensure that bailiffs and creditors treat you fairly and with extra care, particularly during a period of financial or personal crisis.
What If a Bailiff Ignores the Moratorium?
It is against the law for a bailiff to take enforcement action on debts included in your Breathing Space. If a bailiff visits you, tries to take your goods, or otherwise ignores the moratorium, you should:
- Inform the bailiff that you are in a Breathing Space and provide any reference details you have.
- Contact your debt adviser immediately, as they can remind the creditor and bailiff of their legal obligations.
- Keep records of any contact or attempted enforcement, as this may be needed if you need to make a complaint.
Breaching the moratorium can have serious consequences for creditors and bailiffs, including being reported to the relevant regulatory bodies.
Responding to Bailiff Notices During Breathing Space
If you receive a letter, call, or visit from a bailiff while you are protected by a Breathing Space, do not ignore it. Instead, learn how to respond to a bailiff notice to ensure your rights are upheld and to prevent unnecessary stress or confusion.
For full details of your legal rights and the obligations of creditors and bailiffs during a Breathing Space, you can refer to the Breathing Space (Debts) (England and Wales) Regulations 2020.
Managing Your Debt During and After a Breathing Space
When you enter a Breathing Space Moratorium, you get temporary protection from most types of debt enforcement, including bailiff action. However, this pause is designed to give you time to take control of your finances – not to solve your debt problems permanently. Making the most of this period and planning for what happens next is essential for long-term financial stability.
Making the Most of Breathing Space
During your breathing space, creditors and bailiffs must stop most enforcement action and freeze interest or fees on qualifying debts. Use this time wisely to:
- Get professional debt advice: Contact a qualified debt adviser as soon as possible. They can help you understand your options and create a realistic plan for dealing with your debts.
- Review your finances: Take stock of your income, outgoings, and all outstanding debts. This will help you prioritise what needs urgent attention.
- Plan for repayments: Work out what you can reasonably afford to pay towards your debts once the breathing space ends.
The protections and requirements of the scheme are set out in the Breathing Space (Debt Respite Scheme) (England and Wales) Regulations 2020, which explain your rights and obligations during this period.
What Happens When Breathing Space Ends?
When your breathing space period finishes, creditors and bailiffs can resume enforcement action if your debts remain unpaid. To avoid this, it’s important to have a plan in place:
- Negotiate with creditors or bailiffs: You may be able to set up affordable repayment arrangements. Read our guide on negotiating payment plans with bailiffs for practical steps and advice.
- Explore further debt solutions: If your financial situation hasn’t improved, you might need to consider options like a Debt Relief Order, Individual Voluntary Arrangement (IVA), or bankruptcy.
If you’re worried about enforcement resuming, there are more ways to stop bailiffs that you can explore, depending on your circumstances.
Why Professional Advice Matters
Debt situations can be complex, and the wrong move could make things worse. A professional adviser can help you:
- Understand your rights under the breathing space scheme and other legal protections.
- Communicate effectively with creditors and enforcement agents.
- Choose the right debt management strategy for your needs.
Seeking advice early increases your chances of finding a sustainable solution and avoiding further enforcement.
Breathing Space as Part of a Wider Debt Management Strategy
Breathing space is a valuable tool, but it’s just one part of managing debt. It gives you time to pause, reflect, and act – but it’s not a long-term fix by itself. Combining breathing space with a realistic repayment plan, ongoing budgeting, and, if needed, formal debt solutions can help you regain control and move towards financial stability.
For a full understanding of how the scheme works and your legal rights, you can refer to the Breathing Space (Debt Respite Scheme) (England and Wales) Regulations 2020. Taking informed action during your breathing space period is the best way to protect yourself from future enforcement and set yourself up for a more secure financial future.
Breathing Space and Specific Debt Situations
Breathing Space and Specific Debt Situations
The Breathing Space Moratorium is designed to give you temporary protection from most types of debt enforcement in England and Wales. However, how it applies can vary depending on the type of debt you have. Understanding these differences is crucial for making the most of the scheme and knowing where to seek further help.
How Breathing Space Applies to Different Debts
Breathing space covers a wide range of qualifying debts, including credit cards, personal loans, council tax arrears, and rent arrears. While most unsecured debts are included, some debts – like certain court fines and child maintenance – are treated differently under the rules.
If you’re struggling with rent arrears, entering a breathing space means your landlord or letting agent cannot start or continue eviction proceedings for those arrears during the moratorium period. This pause gives you valuable time to seek advice and arrange a repayment plan. For more detailed guidance on managing rent arrears, see our dedicated resource.
Court fines are generally not included in breathing space protections. For example, fines imposed for criminal offences or penalty notices for traffic violations are not paused by the moratorium. However, if you have other court-related debts, such as county court judgments (CCJs), these are usually covered. For further details on how breathing space affects court fines and wage deductions, visit our information page.
Protections for Universal Credit Recipients
If you receive Universal Credit and have debts, breathing space can still provide important protections. Most debts related to Universal Credit, such as advance payments or budgeting loans, are not included in the moratorium. However, other qualifying debts you may have alongside Universal Credit – like rent arrears or council tax – are protected during breathing space. This means creditors cannot contact you or take enforcement action for these debts while the moratorium is active.
For practical advice and support tailored to those on Universal Credit, including information about which debts are covered and how to get help, see our guide to debt and rent arrears help on Universal Credit.
Impact on Wage Deductions for Court Fines
A common concern is whether breathing space can stop wage deductions ordered by the court to recover fines. Under the regulations, deductions from wages for court fines are excluded from breathing space protections, meaning these deductions will usually continue during the moratorium. It’s important to check the specific nature of your fine and seek advice if you’re unsure. For a full explanation of how breathing space interacts with court fines and wage deductions, refer to our detailed resource.
Legal Framework and Further Guidance
The rules about which debts are covered and how protections work are set out in the Breathing Space (Debt Respite Scheme) (England and Wales) Regulations 2020. These regulations define the scope of the scheme, including the treatment of specific debts such as rent arrears, Universal Credit advances, and court fines.
If you are facing enforcement action or deductions from your wages, it’s important to understand your rights and the protections available. Explore our resources on managing rent arrears and debt and rent arrears help on Universal Credit for practical steps and further advice.
The breathing space moratorium is a powerful tool for those struggling with debt, but its protections do not apply to every debt type. Always check which of your debts are covered and seek specialist advice if you’re unsure about your situation.
