Understanding breathing space: a temporary shield from creditors

Breathing space is a formal protection scheme that pauses creditor action for 60 days while you get debt advice. It gives you time to think clearly, stop contact from creditors and creditors' agents, and work out what to do next — without the pressure of ongoing demands or threats of court action.

How breathing space works

During the 60-day period, creditors must stop chasing you. They cannot call, text, email or send letters asking for payment. Court action and enforcement action — such as bailiff visits or wage garnishment — must pause. This applies to most debts: credit cards, personal loans, overdrafts, rent arrears and council tax arrears. Priority debts (mortgage, rent and council tax) are not frozen entirely, but creditors must not take action to evict you or seize goods.

You must be working with an approved intermediary — usually a debt adviser or counsellor — who notifies your creditors that you have entered the scheme. The adviser helps you understand your situation and consider your options, which might include a debt management plan, an IVA or other routes forward.

After 60 days, breathing space ends. If you have not entered a formal debt solution by then, creditors can resume their normal collection activity. If you have arranged a debt management plan or another solution, that takes over and sets new terms.

Who can use breathing space

You can enter breathing space if you are struggling with debts you cannot pay, you live in England or Wales, and you are willing to work with a debt adviser. You do not need to own a home or be in formal insolvency — the scheme is open to anyone with debts, whether employed or not.

The only people who cannot use it are those already in a formal insolvency process — for instance, those already in an IVA or a debt relief order. If you are unsure whether you qualify, an adviser can check this when you get in touch.

What breathing space protects you from

The scheme stops the immediate pressure that debt creates. Creditors' calls and letters stop. Court cases pause. Bailiffs cannot visit. You can focus on understanding your debts and your options without panic.

This does not mean your debts disappear or that interest stops running — most debts continue to accrue interest during breathing space, unless the creditor agrees otherwise. But the active harassment and threat of legal action does pause, which for many people is the difference between being able to think and being stuck in crisis.

Breathing space also stops the cycle that gambling harm often feeds: the urgency, the mounting pressure, the feeling that you must make money fast. It creates space to address the underlying issue — whether that is gambling, overspending or a sudden loss of income — without creditors adding to the weight.

Starting breathing space

You begin by contacting a debt adviser or counselling service. Many are free, either through charities or through the government-funded scheme. An adviser will:

1. Talk through your debts, income and outgoings to understand your full situation
2. Check that you meet the criteria and that breathing space is the right step
3. Notify your creditors in writing that you have entered the scheme
4. Work with you over the 60 days to explore your options
5. Help you move into a more permanent solution once breathing space ends

The adviser handles the notifications, so you do not have to contact each creditor yourself. Once creditors receive notice, contact must stop.

What happens when breathing space ends

At the end of the 60 days, you and your adviser should have explored your options. The most common outcomes are entering a debt management plan, pursuing an IVA, or in some cases applying for a debt relief order if your situation meets the criteria.

If you do not arrange anything and creditors resume collection, you can enter breathing space again once — but only once. After that, the scheme is no longer available to you and you need another solution.

Because of this, the 60 days matter. Use the time with your adviser to make a real decision, not just to postpone the problem. The point of breathing space is to give you the clarity to move forward.

Breathing space and gambling debt

If gambling has driven your debts, breathing space gives you space to address that too. Many people find it hard to think about stopping gambling while creditors are chasing them — the stress pushes them to keep playing, trying to win the money back. Breathing space breaks that cycle by removing the immediate pressure.

During the 60 days, you can also set up tools to block gambling — such as GAMSTOP, which stops you accessing gambling sites you are registered with, or blocking software such as Gamban. These work best when you have space to use them, which breathing space provides. You can also talk to someone you trust about what has happened, or contact a gambling support service.

Getting help with breathing space

If you need debt advice and think breathing space might help, contact GamCare or the National Gambling Helpline on 0808 8020 133 (free, 24/7). They can talk through your situation and point you to a debt adviser. You can also contact BeGambleAware for free, confidential support around gambling.

For debt advice specifically, services like Citizens Advice offer free guidance on whether breathing space is right for you. An adviser can also discuss whether you need to talk to a family member or partner about what has happened, and whether support around mental health or counselling would help alongside the debt work.

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Breathing space in context

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