Mental Health and Debt: Your Legal Rights

There is a deeply proven link between mental health conditions and financial crisis. Debt can cause severe anxiety and depression, while the symptoms of mental ill-health can make it incredibly difficult to manage household bills, communicate with creditors, or make rational spending decisions.

If you are struggling with both your mental health and your finances, it is vital to know that you have strong legal protections in the UK. Creditors are legally required to treat you with extra care, patience, and sensitivity once they are informed of your situation.

If you are receiving professional treatment for a mental health crisis, you may be eligible for the Mental Health Crisis Breathing Space scheme (currently active across England and Wales).

While you are in this scheme:

• All interest, fees, and charges on your debts are legally frozen.
• Creditors are banned from contacting you, demanding payment, or taking any enforcement action.
• Any active court action or bailiff visits must be paused immediately.

You cannot apply for a Mental Health Crisis Breathing Space directly. Instead, an Approved Mental Health Professional (AMHP) — such as a psychiatric nurse, social worker, or psychiatrist — must submit an application on your behalf.

They will need to verify that you are receiving crisis care (such as being detained under the Mental Health Act, receiving crisis home resolution team treatment, or being cared for by a community mental health team for a severe condition).

If you do not qualify for the formal Crisis Breathing Space but still want creditors to stop calling you, you can ask your doctor or mental health worker to fill out a Debt and Mental Health Evidence Form (DMHEF).

This is an official, standard document accepted across the UK financial services industry. Once completed and sent to your lenders, it serves as official proof of your condition. Under the Lending Standards Board rules, lenders must use this information to adapt how they communicate with you, offer longer repayment pauses, and in some compassionate cases, consider writing off the debt entirely.