Breathing Space A Scheme for Debt Relief
- We offer IVAs through our licensed insolvency practitioner, regulated by the Insolvency Practitioners Association, but do not provide specific advice due to FCA regulations.
Quick links
What is breathing space?
Breathing Space is a scheme introduced in 2021 across England and Wales to assist consumers facing problem debt.
There are two types of Breathing Space, both providing temporary protection from debt collection while you work on managing your outstanding debt.
During this period, your creditors will halt all collection efforts and freeze interest and charges. In return, you are required to report any changes in your circumstances and maintain regular payments, such as mortgage and tax payments.
Continue reading for more information on the different types of Breathing Space available.
Standard Breathing Space
This type of Breathing Space is designed for consumers dealing with problem debt. To qualify, you must apply through a registered debt advisor.
The benefits of this option include:
Mental Health Breathing Space
This type of Breathing Space is designed for individuals facing debt while undergoing Mental Health Crisis treatment, such as being detained under the Mental Health Act.
If you qualify, you will receive the same protections as Standard Breathing Space, with some differences:
Who qualifies for breathing space?
Eligibility criteria for Breathing Space include:
Interested in applying for the Breathing Space Debt Respite Scheme?
If you‘re struggling with your debts and meet the above qualifying criteria, then:
Debt and Mental Health:
Dealing with debt can be extremely stressful. If you believe your financial situation is affecting your health, help is available.
We’ve compiled information to help you identify the signs that you might be struggling, along with additional support options that you can access.
What are my options?
If you’re having trouble keeping up with repayments on your unsecured debts but don’t qualify for Breathing Space, there are still options to consider.
If you qualify for an Individual Voluntary Arrangement (IVA), you can gain legal protection from creditors, and interest and charges can be frozen. A Debt Relief Order (DRO) also offers legal protection and may be suitable for individuals with few or no assets or income each month.
Would you like to learn more about the differences between an IVA and a Debt Relief Order?
Based in Scotland?
If you are based in Scotland, you can apply for a similar scheme known as a 'Debt Moratorium.' This allows you to have six months free from creditor pressure, giving you the time to improve your situation, such as finding new employment or exploring debt solutions.
IVA Pros and Cons
With RMS Financial, our consultations are free Whilst determining what solutions you might qualify for. As a debt solution. IVAS involve fees that are only applicable once your plan goes ahead. which are always included in your monthly payment. You can read all about them below.
IVA Pros and Cons
With RMS Financial, our consultations are free Whilst determining what solutions you might qualify for. As a debt solution. IVAS involve fees that are only applicable once your plan goes ahead. which are always included in your monthly payment. You can read all about them below.
IVA Pros and Cons
With RMS Financial, our consultations are free Whilst determining what solutions you might qualify for. As a debt solution. IVAS involve fees that are only applicable once your plan goes ahead. which are always included in your monthly payment. You can read all about them below.
RMS Financial assists over 3,000 individuals in the UK each year.
Our team of specialists helps thousands of families regain control of their finances through an IVA.
Is an IVA the right choice for you?
We can evaluate your eligibility for an IVA.
Would you rather discuss this later?
We are here to provide support in helping you find a solution.
