Bankruptcy / Insolvency Law
Moratorium (Insolvency)
A legal freeze on further legal proceedings, recovery actions, and asset transfers against a company once insolvency resolution proceedings begin.
Once a company is admitted into the insolvency resolution process, a moratorium kicks in, halting fresh suits, execution of decrees, and recovery actions against the company, giving it breathing room to work out a resolution plan without creditors racing to seize assets individually.
This moratorium typically lasts until the resolution process concludes, whether through an approved plan or a shift to liquidation.
Need a Bankruptcy / Insolvency lawyer?
Browse Bankruptcy / Insolvency Lawyers