The Debt Respite Scheme, usually called Breathing Space, gives individuals in England and Wales a period during which most creditor action and interest is paused while they get debt advice. It is a useful tool, but it is designed around personal debt, not company borrowing.
Why it generally does not cover a Credicorp loan
Credicorp lends only to UK limited companies and LLPs, and the loan sits with the company rather than with any director personally. Breathing Space protects an individual's qualifying debts. A loan owed by a limited company is a corporate liability, so it falls outside the personal scheme.
- The borrower is the company, not the director.
- We do not take personal guarantees from directors, so there is no personal debt to protect.
- Statutory Breathing Space moratoria apply to the individual who enters them, not to a separate legal entity.
What support you do have
Even though the statutory scheme is not the right route, that does not leave your company without options. We can agree our own breathing space in practice, pausing or adjusting payments while you take advice or steady your trading. If a director has separate personal financial difficulty, the statutory scheme may help them in their own right, and a debt adviser can confirm that. Talk to us early so we can find the right path for the company.
See also: Glossary: Breathing Space, Does FSCS protection cover my Credicorp facility? and ID verification when you apply.