Moratorium (Schedule B1, paragraph 43)
The legal pause on most creditor enforcement action that takes effect once a company enters administration.
The moratorium suspends most enforcement steps: no winding-up petition can proceed, no security can be enforced, no goods on hire-purchase can be repossessed, and no legal proceedings can be commenced or continued, without the permission of the court or the administrators. The moratorium is automatic on appointment and lasts for the duration of the administration. It does not prevent the administrators themselves from acting on the company's affairs.
