What is a Moratorium?

A moratorium is a six week 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 to decide if you want to proceed with an application. During this six week period, your creditors cannot take any action against you and all interest, fees and charges on your debts are frozen. The frozen interest, fees or charges will be added back onto your debt if you decide not 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.

You cannot be granted a moratorium if you have had another moratorium granted within the last 12 months, unless you have been in a joint debt payment programme in a DAS which has been revoked. 

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 moratorium@aib.gsi.gov.uk or posted to:

Moratorium Application
IRT
Accountant in Bankruptcy
1 Pennyburn Road
KILWINNING
KA13 6SA