Section 251G — Tribunals, Courts and Enforcement Act 2007: Moratorium from qualifying debts

Moratorium from qualifying debts 251G 1 A moratorium commences on the effective date for a debt relief order in relation to each qualifying debt specified in the order (“a specified qualifying debt”).

2 During the moratorium, the creditor to whom a specified qualifying debt is owed—

a has no remedy in respect of the debt, and b may not—

i commence a creditor's petition in respect of the debt, or ii otherwise commence any action or other legal proceedings against the debtor for the debt, except with the permission of the court and on such terms as the court may impose.

3 If on the effective date a creditor to whom a specified qualifying debt is owed has any such petition, action or other proceeding as mentioned in subsection (2)(b) pending in any court, the court may—

a stay the proceedings on the petition, action or other proceedings (as the case may be), or b allow them to continue on such terms as the court thinks fit.

4 In subsection (2)(a) and (b) references to the debt include a reference to any interest, penalty or other sum that becomes payable in relation to that debt after the application date.

5 Nothing in this section affects the right of a secured creditor of the debtor to enforce his security.