Breathing Space: What you need to know

By James Woods — Operations Manager

What is Breathing Space?

Breathing Space is a new scheme that gives people temporary protection from most types of debt collection while they take action to get on top of their debts.

You can apply through a debt adviser for sixty days’ Breathing Space. during this time you continue to engage with your debt adviser and not take out any new borrowing over £500 in this time. You’ll also have to continue to make certain types of payments, including ongoing housing costs, utility bills, and taxes.

Interest and fees will be paused on debts included in Breathing Space while these conditions are met.

You can only apply for Breathing Space once in a 12-month period.

James Woods, Operations Manager at Citizens Advice Doncaster Borough, said:

“The coronavirus pandemic has had a huge impact on lots of people across Doncaster, with thousands of people falling behind on essential bills and getting into debt. We are worried that the real struggle will soon begin for many households”

“If you have unmanageable debts, It’s important you speak to us, breathing space scheme could give you the time to get the advice that will help you resolve your debt issues.

“Breathing Space isn’t a temporary fix to simply keep your creditors at arm’s length. You’ll need to work with your debt adviser to try and make a plan to deal with your debts.”

“For anyone who feels their debt is spiarling out of control, the most important thing is to seek help as soon as possible.”

Are there other types of Breathing Space?

Yes, If you’re being treated for a mental health crisis, a separate scheme applies.

An approved mental health professional will need to confirm you are receiving crisis care. Your GP can’t make this confirmation, but should be able to refer you to someone who can. You can then seek help from the scheme yourself, or someone else — for example a carer, social worker or mental health nurse — could apply on your behalf.

The pause on enforcement lasts as long as you’re receiving crisis treatment, plus 30 days. A nominated person will need to keep in touch with your debt adviser to update them about your ongoing treatment. However, you won’t need to receive debt advice or meet any ongoing requirements listed above.

You can apply for this type of Breathing Space more than once a year. If you still need more time to tackle your debts once your crisis treatment is over, you can still apply for standard Breathing Space afterwards.

James Woods, Operations Manager at Citizens Advice Doncaster Borough, said:

“We know that struggles with debt and with mental health often go hand in hand. If you’re in the midst of a crisis, the special provisions in Breathing Space should give you the time and space you need until you are ready to address your problem debt.”

“Really importantly, these provisions only apply if you’re currently receiving crisis treatment when you make the application. So, even if you are struggling with your mental health, you won’t be eligible unless an approved professional confirms that you’re getting crisis treatment.”

Who is eligible for Breathing Space?

For both types of Breathing Space, you’ll need to live in England or Wales and not currently be in another formal debt solution — like a Debt Relief Order, Individual Voluntary Arrangement or bankruptcy. You’ll also need to owe at least one qualifying debt.

These qualifying debts are quite broad and include things like credit cards, personal loans or overdrafts. Many priority debts, such as rent arrears, fuel arrears and council tax arrears will also qualify.

Some debts won’t qualify for Breathing Space. These include court fines, Universal Credit advance payments and student loans. Secured debts like mortgages or car finance won’t qualify unless you’ve fallen into arrears on your payments.

Your debt adviser will ultimately advise on whether Breathing Space is suitable for you while you identify a longer term solution to your debt problems

James Woods, Operations Manager at Citizens Advice Doncaster Borough, said:

“Most common types of problem debt we deal with would all be considered qualifying debts in Breathing Space. This includes priority debts — like rent arrears or council tax debt — which both can have particularly severe consequences when you can’t pay them.

“Your debt adviser will work with you to find the best way forward. That might involve applying for Breathing Space to buy some time while you choose the right debt solution to fit your circumstances.”

To discuss this or any other option for dealing with debt contact us

Citizens Advice Doncaster Borough

Local Debt team: 01302 499330

National Debt Advice line: 0800 240 4420

Email Advice: advice@citizensadvice-doncasterborough.org

Video Appointments: https://attenduk.vc/CADB-waiting-room

Website:www.citizensadvice.org.uk/