What happens during 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.
Once you've completed the eligibility checks and are registered on the Breathing Space scheme, the Insolvency Service will contact your creditors. They won't be able to add interest or fees to your debts, or take enforcement action, for 60 days.
To ensure it runs smoothly, there will be certain things you'll need to do, and rules your creditors will need to stick to. There will also be things that we commit to doing as we guide you through the process. The details for both what you need to do and what we will do are shown below.
What do I need to do during my Breathing Space?
While you're on the Breathing Space scheme, there are a few things you need to do to keep things running smoothly. To prevent your Breathing Space being cancelled, you must:
- Keep up regular payments.
You’ll still need to keep up with regular payments towards your existing commitments where you can, for example payments to your rent, mortgage, hire purchase payments and utility bills
- Continue seeking debt advice.
You’re required to continue seeking
debt advice, or continue with your debt solution application
- Keep us updated.
You must inform us of any changes to your circumstances while you’re on the scheme
- Avoid taking out more credit.
While you’ve got Breathing Space, you’re not allowed to take out more than £500 in additional credit, either on your own or jointly with another person