Breathing Space Scheme 2026: 60 Days Legal Protection from Creditors

A debt moratorium, also known as Breathing Space, is a government scheme that gives you legal protection from creditors for 60 days. During this time, most enforcement action and contact from creditors must stop, interest and charges are frozen, and you cannot be taken to court for your debts. It is available for most types of unsecured debt including credit cards, personal loans, overdrafts, and utility arrears.

The standard Breathing Space moratorium lasts for 60 days. There is also a Mental Health Crisis Breathing Space which continues for the duration of your mental health crisis treatment plus 30 days after treatment ends. You can only use standard Breathing Space once every 12 months.

In the UK, the Breathing Space moratorium period is 60 days for standard Breathing Space in England and Wales. Scotland has a similar scheme called the Moratorium on Diligence, which lasts for 6 weeks initially and can be extended. Northern Ireland does not currently have Breathing Space but has other protections available through debt advice charities.

The 12-month restriction refers to how often you can use Breathing Space, not the duration of protection. You can only access standard Breathing Space once every 12 months, and the actual protection period is 60 days. Mental Health Crisis Breathing Space can be accessed at any time and is not subject to the 12-month limit.

You are eligible for Breathing Space if you live in England or Wales, owe a qualifying debt, have not had Breathing Space in the past 12 months, and are not currently in another formal insolvency procedure. You cannot apply directly - you must contact a debt advisor from an authorized debt advice provider who will apply on your behalf.

Breathing Space covers most unsecured debts including credit cards, personal loans, overdrafts, payday loans, council tax arrears, benefit overpayments, utility arrears, and rent arrears. Debts NOT covered include secured debts, student loans, debts incurred through fraud, court fines, and child maintenance arrears.

You cannot apply for Breathing Space yourself - you must contact an authorized debt advice provider such as StepChange, National Debtline, or Citizens Advice. The advisor will assess your situation, confirm your eligibility, and submit your application to the Insolvency Service on your behalf. The entire process is free of charge.

During the 60-day Breathing Space period, creditors must stop most enforcement action and contact, interest and charges are frozen, and court and bailiff action is paused. You must continue paying your ongoing household bills and rent/mortgage during this time. Your debt advisor works with you to find a sustainable debt solution during the 60-day protection period.

When Breathing Space ends after 60 days, creditor protections stop and they can resume contact and action. However, any interest and charges frozen during Breathing Space remain frozen permanently and cannot be added back. You should have worked with your debt advisor to arrange a sustainable solution like a DMP, IVA, or DRO during the 60-day period.