Part A1 moratorium (Insolvency Act 1986): monitor appointment checklist covering pre-appointment due diligence, creditor issues, professional requirements, immediate statutory notifications and timelines

Published by a LexisNexis Restructuring & Insolvency expert

Checklists

Checklist

Directors of insolvent companies, or companies that are likely to become insolvent, can seek an initial 20 business‑day moratorium under Part A1 of the Insolvency Act 1986 (IA 1986). The objective is to give viable businesses breathing space to reorganise or attract new investment, free from creditor action.

This is a free‑standing protection, not a gateway to any particular insolvency procedure. It is intended to be a streamlined route that keeps administrative burdens low, makes progress as swift as possible, and avoids imposing disproportionate costs on struggling businesses. The aim is to reduce paperwork to the bare minimum and enable the moratorium to progress as swiftly as practicable.

An insolvency practitioner (IP) serves as the ‘monitor’; however, subject to certain constraints, the directors continue to run the company on a day‑to‑day basis. It is therefore a ‘debtor‑in‑possession’ process, with the company being the ‘debtor’. The monitor’s duties are significant, but their powers are limited because directors remain in day‑to‑day control.

This Checklist outlines the issues a monitor should consider before accepting an appointment, so they comply with statutory and compliance obligations both on appointment and immediately thereafter...

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Web page updated on 20/05/2026

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