“Breathing Space gave me time and headspace to deal with things.”

Breathing Space (Debt Respite Scheme)

For people facing overwhelming debt, Breathing Space can be life-changing. Read how one parent was supported to pause creditor pressure, protect their wellbeing, and avoid an unsuitable debt solution.

Client background 

Taylor is a single parent living in temporary accommodation with their two children. They were not working due to ill health and were receiving Universal Credit, Housing Benefit, Personal Independence Payment and Child Benefit. 

At the point of seeking advice, Taylor had significant unsecured debts (estimated between £20,000–£35,000) and had been encouraged by a commercial provider to enter into an Individual Voluntary Arrangement (IVA). They reported feeling pressured and uncertain about proceeding, particularly given concerns about how formal debt solutions might affect an ongoing legal issue. 

Alongside their financial situation, Taylor was experiencing significant personal challenges, including: 

• Ongoing mental health difficulties 

• Limited access to medical support 

• Caring responsibilities for children with additional needs 

• A history of domestic abuse and limited support network 

They described feeling overwhelmed, distressed and unsure how to move forward. 

Intervention 

Citizens Advice identified that Taylor would benefit from a Breathing Space (Debt Respite Scheme) and, after confirming eligibility, supported them to enter a standard Breathing Space moratorium. 

This provided: 

• 60 days’ protection from creditor contact 

• Suspension of most enforcement action 

• Freeze on interest and charges on qualifying debts 

During this period, ongoing support was provided, including: 

• Clarification of their options around withdrawing from the IVA 

• Referral to a solicitor via the Law Clinic to address legal concerns 

• Assistance engaging with creditors through the Breathing Space portal 

• Support to identify all debts (including additional debts identified by creditors) 

• Ongoing welfare check-ins 

Impact of Breathing Space 

The Breathing Space had a significant positive impact on Taylor’s wellbeing and ability to engage with their situation. 

1. Reduced stress and improved mental wellbeing 

Taylor reported that the Breathing Space: 

• Gave them time to think clearly without pressure from creditors 

• Reduced anxiety caused by frequent contact and demands for payment 

• Allowed them to feel more in control of their situation 

They described it as giving them “time and headspace to deal with things.” 

2. Capacity to focus on family and health needs 

With creditor pressure paused, Taylor was able to: 

• Focus on their children’s needs, including school assessments and health concerns 

• Attend to their own health, including managing their mental health and medication 

• Engage with support services at a pace that suited their circumstances 

This was particularly important given the complexity of their family situation. 

3. Safer and more informed decision-making 

Prior to Breathing Space: 

• Taylor felt pressured into an IVA 

• They were unsure about the suitability of debt solutions 

• They had concerns about an ongoing legal issue 

During Breathing Space, they were able to: 

• Pause the IVA process and reconsider their options 

• Seek independent legal advice 

• Begin reviewing a realistic household budget 

• Explore alternative debt solutions more safely 

4. Improved engagement with advice 

Initially, Taylor found it difficult to engage consistently due to competing pressures. 

However, during Breathing Space: 

• They re-engaged with appointments 

• Participated in budgeting discussions 

• Took steps to clarify household and utility costs 

• Engaged with council and energy providers to resolve billing issues 

Outcome 

Breathing Space successfully: 

• Stabilised their situation during a crisis period 

• Prevented escalation of creditor action 

• Enabled them to avoid entering into a potentially unsuitable IVA 

• Supported them to begin making informed, sustainable decisions about their finances 

• Improved their mental wellbeing and ability to cope 

NB: Names and certain details have been changed to protect our clients’ anonymity.