Breathing Space Debt Moratorium Calculator 2026

Breathing Space (Debt Respite Scheme) gives people in problem debt a legal 60-day protection period from creditor enforcement, interest, and charges. It was introduced in England and Wales in May 2021.

Standard Breathing Space: 60 days — available to anyone in problem debt who seeks advice from a debt adviser. Mental Health Crisis Moratorium (MHCM): unlimited duration, lasting as long as the individual is in mental health crisis treatment plus 30 days after treatment ends.

You cannot apply directly. You must contact a registered debt adviser (e.g. StepChange, Citizens Advice, National Debtline). The adviser assesses eligibility and applies to the Insolvency Service on your behalf through the electronic service.

Most personal debts: credit cards, loans, overdrafts, utility arrears, council tax, rent arrears, HMRC debts. Excluded: secured debts (mortgage), crisis-type debts taken out during the moratorium, student loans (for MHCM certain debts may be excluded).

Standard Breathing Space can only be used once every 12 months. The Mental Health Crisis Moratorium has no such restriction — it can be applied whenever a person is in mental health crisis.

No. Breathing Space temporarily pauses enforcement and stops interest accumulating — it does not write off or reduce the debt itself. You still owe the full amount after the moratorium ends. It gives you time to arrange a longer-term solution.

After 60 days (or when MHCM treatment ends), normal creditor activity resumes. The debt adviser should have helped you arrange a debt solution during the moratorium — such as a DRO, IVA, DMP, or bankruptcy.

Breathing Space is recorded on the Individual Insolvency Register during the moratorium but is not a formal insolvency. However, creditors can see the moratorium status and may report it to credit reference agencies. Your credit file may be affected.