What Is a Moratorium?

Page 1

What Is a Moratorium?

ZUNE TH

S AT TA R


What Is a Moratorium? A moratorium is a piece of legislation that delays or suspends an activity or a law. It can be imposed by regulators, a government or a business.

A moratorium can also be used to temporarily suspend a law so that a legal challenge against it can be mounted; the moratorium will be lifted as and when the issue (which caused the moratorium to be put in place) has been resolved.

2


In the context of a debt, a moratorium can be ordered by a legal official to officially delay the payment of a debt.

A moratorium can also be used to temporarily suspend a law so that a legal challenge against it can be mounted; the moratorium will be lifted as and when the issue (which caused the moratorium to be put in place) has been resolved.

What Is a Debt Moratorium? In the context of a debt, a moratorium can be ordered by a legal official to officially delay the payment of a debt. A debt moratorium will be issued in light of extenuating circumstances that make it impossible for the debtor to pay their debt. A moratorium is often imposed in response to temporary financial issues; for example, during bankruptcy proceedings a moratorium can be imposed on activities such as debt collection. During the period of debt relief, creditors cannot take action against the debtor for any money owed.

A moratorium is often imposed in response to temporary financial issues; for example, during bankruptcy proceedings a moratorium can be imposed on activities such as debt collection.

3


FOR FURTHER INFORMATION ABOUT MORATORIUMS IN RELATION TO THE PROPERTY MARKET, VISIT THE BLOG OF ZUNETH SATTAR.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.