Debt Stressing You Out? Get Some ‘Breathing Space’

If you are stuck in problem debt and just not able to afford your debt repayments, then you have the option to exercise your right to legal protection from all your creditors. The UK government offers this right in the Debt Respite Scheme, also called Breathing Space.

Are you worried about immediate debt repayments that are due this month? If you cannot make those payments this month or even the next month, you can go for the Breathing Space Scheme.

This option is part of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.

Two Kinds of Breathing Space

You need to know that two kinds of breathing space options are available to you as a debtor.

Standard Breathing Space

This kind of breathing space is available to you if you face problem debt. You get legal protection from all creditor action for a period of up to 60 days. Getting this kind of protection means that most enforcement action from creditors gets paused. There will be no contact from creditors. Most interest and any charges accrued on your debts will be frozen.

Mental Health Crisis Breathing Space

You can only avail yourself of the mental health crisis breathing space if you are receiving mental health crisis treatment. This option has more robust protection and continues for as long as your mental health crisis treatment is going on.

Eligibility Criteria For Standard Breathing Space

What about the eligibility criteria for exercising the breathing space option as a debtor?

If you choose the Standard Breathing Space, then:

1-Debtors can get access to it only through a debt advisor who gives debt advice.

2-If you are unlikely to repay your debts, then you can apply to your debt advisor for a standard breathing space. Here you should know that your debt advisor can even decide that breathing space is not the right option.

3-If you can access funds or income and might be able to pay your debts with a bit of budgeting help, then you won’t be eligible.

4-If you have assets that can be sold to pay off debt, you won’t be eligible.

5-If you can get a better debt solution without needing protections, you won’t be recommended breathing space by your debt advisor.

Eligibility Criteria for Mental Health Crisis Breathing Space

Regarding protections that you can avail for this kind of breathing space:

1-Suppose an Approved Mental Health Professional (AMHP) can certify that you are receiving mental health crisis treatment, then this evidence helps your debt advisor. They can recommend starting mental health crisis breathing space for the debtor.

2-Different categories of people can apply to your debt advisor on your behalf as a debtor to get this kind of breathing space.

Once you get in touch with a good debt advisor, all your questions regarding breathing space can be quickly answered.

You just need to know that you have the right to ‘breathing space’ and not worry about how to pay your debt.

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