A period of time during which a certain activity is not allowed or required. Often used in the context of a restructuring or workout so that creditors cannot enforce their rights for a certain period to enable the terms of a restructuring to be agreed.

The protection of a statutory, standalone moratorium procedure (known as the Part A1 moratorium) is available under the Insolvency Act 1986 to eligible companies. For more information, see Practice note, The moratorium under Part A1 of the Insolvency Act 1986.

A statutory moratorium also applies in administration which protects the company against creditor action (including the commencement of legal proceedings) except with the consent of the administrator or the court. And an individual can apply to court for the protection of a moratorium (known as an interim order) while putting together a proposal for an individual voluntary arrangement.