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Definition
A moratorium temporarily bars creditors from enforcing debts, presenting winding-up petitions or repossessing goods, giving the company protected time to pursue a rescue. It applies automatically in administration and as a standalone tool under the Corporate Insolvency and Governance Act 2020.
In plain terms
It is a legally enforced timeout that stops the pile-on while directors and advisers work out the best way forward.
Why it matters for your company
A moratorium is a powerful but time-limited shield, overseen by a monitor. It works only alongside a credible plan. Acting before creditors escalate keeps more options open. See forbearance.
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