Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Moratorium definition

What does Moratorium mean? A moratorium is a legally imposed pause on creditor enforcement and legal proceedings, giving a debtor temporary protection while rescue, restructuring or insolvency options are pursued. It is usually created by statute, with scope and duration set by legislation and shaped by case law. In England and Wales, moratoria arise in several contexts, including the standalone company moratorium under Part A1 Insolvency Act 1986 (inserted by the Corporate Insolvency and Governance Act 2020), the statutory moratorium on entry into administration (Schedule B1), interim orders for individual voluntary arrangements, and the Debt Respite Scheme (Breathing Space) for individuals. During a moratorium,...

Breathing Space Moratoriums under the Debt Respite Scheme (England and Wales): eligibility, qualifying debts, application process, creditor challenges, duration and midway review

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

The Debt Respite Scheme (Breathing Space moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, SI 2020/1311 (the Regulations) took effect on 4 May 2021. Under these Regulations, a person who satisfies the relevant eligibility tests may, through a debt advice provider, seek either a breathing space moratorium or, if receiving mental health crisis treatment, a mental health crisis moratorium. In both situations, a moratorium limits creditor enforcement and pauses interest, fees and charges on any qualifying debt covered by it. A moratorium is not an end in itself; rather, it grants someone with problem debt the time to obtain professional debt advice and develop a longer-term strategy to resolve their financial difficulties. The route to obtaining either a breathing space moratorium or a mental health crisis moratorium is broadly the same. This Practice Note concentrates on breathing space moratoriums.

Eligibility criteria for a breathing space moratorium

An individual with problem debt may only access the protection of a moratorium if the following are met:

they are an individual
they owe a qualifying debt to...

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Web page updated on 21/05/2026

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