Director information hub: How to get a moratorium
A moratorium gives companies formal breathing space for 20 business days from creditor action.
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About moratoriums
A moratorium is formal breathing space granted by the court and runs for 20 business days.
When you get a moratorium, it protects you from:
- insolvency and creditor action (except in some circumstances)
- legal action (unless specifically ordered by a court or in the case of employee action)
If your company is facing financial difficulty, you can apply for a moratorium which gives legal protection from creditors while you investigate rescue and restructuring options.
During a moratorium
During a moratorium, you must continue to carry out your duties as a director, including fulfilling your filing obligations with Companies House.
A moratorium can be extended for a further 20 business days by filing the relevant statements with the court, or by applying to the court. Creditor consent is required for extensions of more than 20 days.
Role of the moratorium monitor
To get a moratorium, your company will need to engage a licenced insolvency practitioner as a monitor.
The monitor will:
- confirm to the court that a moratorium is appropriate
- oversee the activities carried out by the directors during the period of the moratorium
- report any offences committed by the directors in connection with the moratorium
- file documents related to the moratorium with Companies House
A full list of the forms needed to apply for a moratorium is available from Companies House.