Debt enforcement moratorium extended

The government will extend the debt enforcement moratorium until the end of the year, business minister Lord Callanan has announced.

Following an extension of the commercial eviction ban earlier this month, the government has now issued an extension to the ban on statutory demands and winding up petitions being used to recoup coronavirus-related debts.

Both aspects of the Corporate Insolvency and Governance Act were supposed to expire on 30 September, but with additional restrictions and the likelihood of a six-month period of uncertainty, it has been deemed necessary to extend the support.

The relaxation of entry requirements to the moratorium will also be extended until 30 March 2021, meaning any company may enter if they have been subject to an insolvency procedure in the previous 12 months.

Measures will also ease access for companies subject to a winding up petition. The temporary moratorium rules will also be extended to 30 March 2021.

“It is vital that we continue to deliver certainty to businesses through this challenging time, which is why we are now extending these important and necessary measures to protect companies from insolvency,” said Callanan.

“Through this measure, we want to ensure businesses are able to not only come through this testing period, but also to plan, adapt and build back better.”