Due to the current COVID-19 pandemic, emergency legislation has been enacted to extend the duration of the moratorium from six weeks to six months temporarily. In addition to this, under normal circumstances a moratorium cannot be granted more than once in any 12-month period.
This rule was set aside temporarily as a result of the pandemic, however has now been reinforced as of 30 September 2021. From 1 October 2021, moratorium protection cannot be provided where an application has been made in the previous 12 months.
For further details see below:
- Moratorium guidance
- Moratorium Q & A
- News article
- Dear Trustee letter- The Coronavirus (Scotland) Bill
What is a moratorium?
A moratorium is a period of debt relief during which creditors cannot take any action against you for debts you owe them. If you are thinking of applying for bankruptcy, a trust deed or Debt Arrangement Scheme (DAS) and require more time to think things over, but are concerned about what your creditors could do in the meantime, you could request a moratorium.
If your moratorium is granted, the Accountant in Bankruptcy will register this on the Register of Insolvencies and the DAS Register. From this date, you then have six weeks (six months) to decide if you want to proceed with an application. If you are granted a trust deed or bankruptcy then any interest, fees or charges will either be settled or written off once completed. Under DAS, these will be written off on completion of the debt payment programme.
How can I apply?
An application can be accessed and submitted to AiB through the Register of Insolvencies homepage. A Form 33 is used where the applicant is an individual person or the executor of a deceased’s estate. A Form 34 should be used for entities to apply (such as partnerships/trusts etc.).
Alternatively, the forms can be completed, signed, scanned and emailed to the AiB’s Insolvency Registrations team at email@example.com or posted to:
Accountant in Bankruptcy
1 Pennyburn Road
AiB's privacy statement can be viewed on the website here. It's recommended if you are applying for a moratorium you read the statement beforehand.