What happens after Breathing Space?
The Breathing Space scheme is available in England and Wales. In Scotland, the moratorium period is similar, but has different benefits and considerations.
If your debt solution has been set up
If you completed your debt advice during your 60 days of Breathing Space, we'll get in touch to confirm that your Breathing Space has ended.
No matter which debt solution you've chosen, once your Breathing Space has ended, you won't be able to apply again for another 12 months.
If your solution hasn't been set up
If you haven't completed your debt advice and don't have a debt solution in place, you’ll need to continue making payments towards the debts that were included in your Breathing Space application if you can afford to.
Get debt advice as soon as possible if your Breathing Space has ended and you haven't completed your debt advice or set up a solution. This will allow us to help you get your finances back on track before your situation gets any worse. You can get free, confidential debt advice on the phone.
What can creditors do after Breathing Space has ended?
Once your creditors have been informed that your Breathing Space has ended, they can:
- Start applying interest, charges, fees and penalties to your debt from the end date of your Breathing Space. However, they can’t backdate these for the time you were on Breathing Space, unless they’ve obtained a court order
- Take action to reclaim the debt, including contacting you
- Start or resume court action to reclaim the debt
If you’ve started a debt solution, or made a formal arrangement with your creditors to deal with your debt, this could stop or reduce the actions above being taken.
Remember! After your Breathing Space ends, you won’t be able to apply again for 12 months, so it's important that you get a debt solution set up during the time you're on Breathing Space.
If you need to speak to us about the end of your Breathing Space, or about any action your creditors might take, please contact us.