Legal Definitions - breathing room

BREATHING ROOM

Breathing room is a slang term used to describe the period of time after someone has declared bankruptcy. During this time, the debtor is given the opportunity to create a plan to repay their debts without being bothered or interrupted by their creditors.

After declaring bankruptcy, John was given a six-month breathing room to come up with a plan to repay his debts.

During the breathing room, creditors are not allowed to contact the debtor or take any legal action against them.

The term breathing room refers to the time given to a debtor to create a debt-repayment plan without any interference from their creditors. This period is usually granted after someone has declared bankruptcy and is meant to give the debtor a chance to get back on their feet. During this time, creditors are not allowed to contact the debtor or take any legal action against them, giving them the space they need to come up with a plan to repay their debts.