What is Breathing Space?
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 – known as ‘Breathing Space’ is legislation which came into force on the 4th May 2021.
The regulations give someone in problem debt the right to legal protections from their creditors.
Problem debts include:
- Council Tax
- Housing rent and mortgage arrears
- General debts, i.e. a paid service the Council provides
- Business Rates (sole traders only)
- Housing Benefit overpayments
- Parking charges
- personal loans
- pay day loans
- utility bill arrears
There are two types of breathing space:
- standard breathing space, and
- mental health crisis breathing space.
Standard Breathing Space
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.
Mental Health Crisis Breathing Space
Only available to someone who is receiving mental health crisis treatment and 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).