Statutory Emergency Triage Guide
Breathing Space vs IVA: Emergency Legal Freeze vs Debt Settlement
Breathing Space is not a permanent debt solution—it is a mandatory 60-day legal pause on creditor enforcement to give you time to seek advice. An IVA is a long-term, 5-year statutory settlement that legally writes off unaffordable balances.
Interactive Statutory Eligibility Tool (2026 Standard)
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£15,000
£1,000£30,000 (DRO Cap)£60,000+
£140 / mo
£0 (DRO Range)£75 (DRO Cutoff)£500/mo
Most Suitable Statutory Solution:
Individual Voluntary Arrangement (IVA)
With over £8,000 in debt and steady income, an IVA provides legally binding protection from creditors, freezes all interest and enforcement, and writes off remaining debt upon completion.
DRO: ✗ Ineligible
IVA: ✓ Strong Fit
DMP: ✓ Viable (Charity)
Bankruptcy: ⚠ Option (£680)
Breathing Space vs IVA: Statutory Comparison
| Feature | Statutory Breathing Space | Individual Voluntary Arrangement (IVA) |
|---|---|---|
| Primary Purpose | 60-day emergency pause on all creditor action | Permanent statutory debt reduction & write-off |
| Duration | 60 Days (Mental Health: Treatment + 30 days) | 5 to 6 Years |
| Debt Discharge | None (debts remain owed after 60 days) | Yes (60–80% written off upon completion) |
| Application Cost | £0 (100% Free via authorised advisor) | £0 upfront (fees deducted from monthly plan) |
| Bailiff & Court Protection | 100% Frozen by Law (Section 7 SI 2020/1311) | 100% Frozen by Law (Section 252 Insolvency Act) |
Need Immediate Protection from Bailiffs or Creditors?
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