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  • Writer's pictureGreenline Accountants

Debt Respite Scheme (Breathing Space Scheme)

The government’s Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 come into force today, 04 May 2021 and will give individuals in debt the right to legal protection from their creditors.

The idea is to give individuals time, "breathing space" to organise their financial affairs and to come up with a workable financial plan to resolve any debt issues they may be having.

There are two types of breathing space: a standard breathing space and a mental health crisis breathing space.

A standard breathing space is available to anyone with problem debt. It gives them legal protections from creditor action for up to 60 days. The protections include pausing most enforcement action and contact from creditors and freezing most interest and charges on their debts.

A mental health crisis breathing space is only available to someone who is receiving mental health crisis treatment and it has some stronger protections. It lasts as long as the person's mental health crisis treatment, plus 30 days (no matter how long the crisis treatment lasts).

The schemes are designed for individuals rather than Limited Companies, (for restructuring and debt solutions for limited companies please contact us so that we can assist you with professional advice through our associated IP's).

The breathing space schemes can be accessed directly through regulated Debt Advice providers or Local authorities.

For more information visit


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