Managing debt can be overwhelming, especially when creditors demand payments you cannot afford. The UK government introduced the Debt Respite Scheme (Breathing Space) in May 2021 to give individuals in financial difficulty temporary relief from debt collection and enforcement.
At Fraser Bond, we help individuals, landlords, and property investors navigate financial challenges, including rent arrears and debt management solutions.
The Debt Respite Scheme (Breathing Space) is a legal framework that gives individuals temporary protection from creditors while they seek debt advice. The scheme is designed to provide breathing room for debtors so they can work towards a long-term solution without the pressure of enforcement actions.
There are two types of Breathing Space:
1️⃣ Standard Breathing Space – Lasts up to 60 days, giving debtors time to seek professional advice and make a plan.
2️⃣ Mental Health Crisis Breathing Space – Available for people receiving mental health crisis treatment, lasting as long as the treatment plus 30 days.
Once a debtor is enrolled in the scheme:
✅ Creditors must freeze interest, fees, and charges on eligible debts.
✅ Debt collection and enforcement action must pause for the duration of the Breathing Space period.
✅ Legal action cannot be started or continued (e.g., bailiff action, eviction for rent arrears).
✅ The individual must engage with debt advice and work towards a repayment plan.
To be eligible, an applicant must:
✔️ Credit card debt
✔️ Personal loans & overdrafts
✔️ Council tax arrears
✔️ Rent arrears
✔️ Utility bill debts
✔️ Mortgage arrears (but repossession proceedings can still continue)
✔️ Some business debts (if personally liable)
❌ Debts NOT covered:
1️⃣ Contact a Regulated Debt Adviser – Speak to StepChange, National Debtline, or Citizens Advice.
2️⃣ Debt Adviser Assesses Your Eligibility – If you qualify, they will submit the application.
3️⃣ Your Creditors Are Notified – They must freeze charges and stop enforcement.
4️⃣ Engage with the Debt Advice Process – Work towards a repayment plan.
At Fraser Bond, we provide expert guidance for tenants, landlords, and property investors facing financial difficulties. If you need advice on managing rent arrears, creditor negotiations, or property debt, our team can assist you in finding the best solution.
