Curtailment of individual rights by statutory moratoria

The inclusion of a statutory moratorium has been a consistent feature of UK insolvency regimes, most recently with the introduction of a restructuring moratorium by the Corporate Insolvency and Governance Act 2020. Despite the overarching intentions of promoting the rescue of a company, statutory moratoria can cause significant hindrances for those stakeholders seeking to exercise their proprietary or contractual rights such as retention of title claimants and other interested creditors. This article explores some of the practical repercussions of statutory moratoria under the current insolvency regime including the moratorium in administration under Schedule B1 of the Insolvency Act 1986 and the potential impact of the self-standing moratorium introduced by the Corporate Insolvency and Governance Act 2020.