What is a company moratorium?
A standalone company moratorium gives an eligible business an initial 20 business days of protection from many creditor actions while rescue is explored. Directors remain in control under the oversight of a licensed insolvency practitioner acting as monitor. It is not a freeze on every debt or payment.
Business Insolvency Helpline • Checked 1 November 2026
General guidance, with procedural detail focused on England and Wales. Rules and routes can differ in Scotland and Northern Ireland.
Who can use it?
Eligibility and the prospect of rescuing the company as a going concern must be assessed. The proposed monitor needs sufficient information to support the statutory statements. Certain companies and recent insolvency situations are excluded.
Prepare current accounts, cash forecasts, debt and security schedules and a credible rescue proposal. The procedure is not designed merely to delay an unavoidable closure.
Which payments still need to be made?
Important liabilities remain payable, including relevant wages, supplies during the moratorium, rent for the period and certain financial obligations. Ask the monitor to identify which debts receive a payment holiday and which do not.
The company must fund the protected period. If required payments cannot be met or rescue is no longer likely, the monitor may need to end it.
Can protection be extended?
An additional 20 business days may be available without creditor consent if the conditions are met. Longer extensions involve further requirements, creditor consent or the court. Extension must be addressed before expiry.
This is separate from the moratorium associated with administration. In administration an administrator takes control; under a standalone moratorium the directors continue managing with monitoring.
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Related questions
No. It provides time to explore a solution. Any compromise or repayment arrangement needs its own lawful process.
No. Exceptions apply, including certain employment proceedings and cases where the court gives permission.
No. It belongs to the administration process and has different requirements and effects. Obtain advice on the appropriate route.
Sources checked for this guide
- Applying for a moratorium under the corporate insolvency and governance act 2020 (www.gov.uk)
- Test doc (www.gov.uk)
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