Falling into debt is a stressful experience, and it can often take some time for a debt adviser to help you sort things out.
With Breathing Space, those in problem debt have the right to protection from creditors – the people they owe money to – for a period of 60 days. In return, creditors have the obligation to respect this right and refrain from all action, contact and communication with their client.
If you are eligible, we can make the application for you. Contact us now on 0800 808 5700.
What is Breathing Space?
Breathing Space gives people in debt the time to get advice and find an appropriate long-term solution to deal with their debts. During this time, interests and fees are also frozen, making sure your debt doesn’t increase further.
This new scheme was a Government pledge in its 2017 manifesto, and it came into force on May 5th 2021. Here at Debt Free London we have already made several applications to get our clients the space they need to sort things out.
If you’d like to apply...
Breathing Space is designed to help as many people as possible, but there are some eligibility criteria.
Not all debts can be included, although most common types of debts are. You must also keep paying your bills such as gas, council tax and other ongoing liabilities. Anyone who contacts Debt Free London for debt advice will be considered for breathing space, as well as information about what debts can and cannot be included.
Special protection is available for those who are facing extra mental pressure and getting health support. With a Mental Health Crisis Breathing Space, these protections will be available for the full duration of the crisis treatment, plus another 30 days.
If you are eligible and would like to apply, your debt advisor will submit your application on the insolvency service online. After this, your 60-day Breathing Space will begin. You can add any debts you forgot to include, and your creditors can challenge specific debts included in the scheme or request a review.
During the Breathing Space
After 30 days, we’ll review your situation. If a Breathing Space is appropriate, the protection will continue. In some circumstances, specific debts could be removed or Breathing Space could be cancelled. For example, if your circumstances have changed, you may no longer be eligible.
We’ll keep you updated and guide you every step of the way, so you should stay engaged with us as we help find the right solution for you.
Contact us on 0800 808 5700 to speak to one of our specialist debt advisers.