Breathing Space, formally the Debt Respite Scheme, is a government scheme in England and Wales that gives an individual in problem debt a legal period during which most creditor action and interest are paused while they receive debt advice.
What it does
During a Breathing Space, qualifying creditors generally cannot add certain interest or charges or take enforcement action on the protected debts. It is entered through a debt adviser, not applied for directly, and is intended to give a person room to get back on their feet.
- It protects an individual's personal qualifying debts.
- It is time-limited and accessed through advice.
- There is a standard route and a separate mental health crisis route.
Why it usually does not cover a Credicorp loan
Credicorp lends only to limited companies and LLPs, and the loan belongs to the company as a separate legal entity. We do not take personal guarantees from directors. Breathing Space protects individuals, so a corporate liability generally falls outside it. A director with separate personal debt difficulties may still benefit from the scheme in their own right. Even though the statutory scheme rarely applies to company borrowing, we can agree our own informal breathing space while you take advice.
See also: Arrears (glossary), Glossary: holding company and Does the Breathing Space scheme apply to my business loan?.