Give yourself time to think, with the Debt Respite Scheme
By Mr Bankruptcy
22nd May 2025
If you’re feeling overwhelmed trying to face up to debt that’s got out of hand, then a brief break from your creditors would be a lifeline. It would allow you the time and peace to get your thoughts in order, take advice and devise a plan of action, would be a lifeline.
Well, if you live in England or Wales, the Debt Respite Scheme offers just that.
How does the Debt Respite Scheme Work?
The Debt Respite Scheme, also known as Breathing Space, is a government initiative to give temporary relief to anyone struggling with debt. It offers precious time for you to take control of your finances and start working towards a solution that suits your circumstances.
In effect, it’s a 60-day moratorium during which you don’t have to fear every knock on the door or ever letter coming through your letterbox.
During this period, creditors are prohibited from taking any further action to recover debts, including:
- Making contact. Creditors can’t contact an individual to demand payment.
- Adding interest or charges. Creditors can’t add interest or charges to the debt during the respite period.
- Taking legal action. Creditors aren’t allowed to take legal action to recover a debt for 60 days.
The scheme may give you temporary protection, but it’s not a payment holiday; you’re still legally obliged to make debt payments, including ongoing payments for secured debts such as mortgages.
Who is eligible for this breathing space?
To be eligible for the Debt Respite Scheme, individuals must be struggling to pay off a breathing space-eligible debt. This includes most types of debt, including credit card, loan, and utility bill debt.
An applicant must not have any other debt solutions in place, such as an Individual Voluntary Arrangement or Debt Relief Order. Neither can they be an undischarged bankrupt when they apply.
If you’re already using the Breathing Space scheme, or you’ve used it within the last 12 months, then you aren’t eligible unless it was for a mental health crisis.
Supporting mental health
It’s common among my clients for a build-up of debt to happen over a period of time, taking its toll on mental health and family relationships bit by bit.
If you’re receiving mental health crisis treatment when you apply for the scheme, your protection from creditors will be even longer. The breathing space lasts for the length of your treatment, plus another 30 days on top.
In addition, if you’re receiving mental health treatment and you aren’t able to speak to a debt adviser yourself, then you can ask someone else to speak to them on your behalf.
Benefits of the Debt Respite Scheme
I know from first-hand experience the effect that a debt problem can have on mental health. This scheme can reduce the stress load and anxiety associated with bad debt, allowing an individual to retake control of their mental health and their lives.
Even a temporary relief from creditor actions will allow you that crucial head space to put your problem into perspective, listen to some good debt advice and focus on finding a long-term solution.
That solution may involve other debt solutions, such as a DRO or filing for bankruptcy, but at least you will have had the time to explore in peace which option is right for your circumstances.
How to access the Debt Respite Scheme
To access the Debt Respite Scheme, you can contact a professional debt advisor or talk to one of the organisations or charities that exist to help people in debt, such as Citizens Advice or the StepChange Debt Charity or the MoneyHelper website (this is also a service we offer). They can advise on eligibility.
Explain your circumstance and your advisor will complete an application form for you if they believe that this is the right course of action for you.
It’s free to apply for ‘Breathing Space’, but some debt advisers may charge you a fee for their services.
To find out more for yourself about the scheme you can visit the Government’s own information page.
Is it time to regain control of your debt?
If you are struggling with debt, it’s essential to explore all available options. The future might seem dark, but by providing temporary relief from creditor actions, the Debt Respite Scheme can help individuals in debt to take back control of their finances and find a route towards a brighter future.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive, non-judgemental and friendly approach, we offer a full range of advice and professional services, laying out all available schemes and options to both individuals and business owners/directors who face an unmanageable debt. We also advise anyone involved in a civil or commercial dispute.
Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Do you qualify for our free consultation service?
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, then contact James Rosa Associates today, ring 0845 6807217 or email enquiries@jamesrosa.co.uk and find out whether you qualify for our free consultation service.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.