A moratorium grants temporary protection from people you owe money to (creditors). It lasts for 6 months and means creditors are not allowed to take any action to recover what you owe them during that time.
During a moratorium people you owe money to will not be able to:
- arrest your bank account
- freeze your wages
- apply to make you bankrupt
A moratorium is not a debt solution. It does not write off debt or stop interest or charges being added to any money you owe.
Applying for a moratorium can give you more time if you're thinking about applying for:
- bankruptcy
- a trust deed
- a debt arrangement scheme
Who can apply
You can apply for a moratorium if you:
- live in Scotland
- have unsecured debts
- have not applied for a moratorium in the last 12 months
- have not already entered bankruptcy
- are not already in a Trust Deed or a Debt Arrangement Scheme
How to apply for a moratorium
Find a money adviser
It's important to speak to a money adviser who will check if a moratorium is right for you. You can get free advice from anapproved money adviser.
Fill in the application form
Use the debtor moratorium form the on the Register of Insolvencies website to apply. The application form will ask you to provide personal information about your debts.
You can apply by yourself or a money adviser can apply for you.
What happens next
Once you have submitted your application, the Accountant in Bankruptcy (AiB) will review it and make a decision.
If your application is accepted
If accepted, the AiB will register the moratorium on the Register of Insolvencies (RoI). The RoI is a public record, meaning that details of the moratorium will be publicly available.
The AiB will not send a letter or email to let you know you have been accepted. To check your application you can search the Register using your name and post code.
If your application is not accepted
If your application is not accepted, the AiB will send you a letter or an email letting you know the reason.
FAQs
Most of the time, moratoriums are intended to alleviate short-term financial hardship or provide time to resolve related issues. In bankruptcy law, a moratorium is a legally mandated hiatus in debt collection from creditors.
Can I be evicted if I applied for ERAP NY? ›
PROTECTIONS FOR TENANTS
Once a landlord accepts an ERAP payment, the tenant cannot be evicted for not paying rent during the period covered or for an expired lease during the 12 months following this payment.
What happens when the sheriff comes to evict you in NY? ›
Tenant Gets 14 Days to Move Out
The sheriff is required to give the tenant at least 14 days' notice in writing before executing the warrant (NY RPA Code § 749(1-2a)). The tenant must move out within the 14 days or else they will be forcibly removed.
What is the eviction moratorium in NYC 2024? ›
In 2024, the maximum allowable increase is estimated to be around 8.82%. If a landlord raises the rent above this limit, they won't be able to evict tenants for nonpayment unless they can justify the increase through costly a court process.
What are the benefits of a moratorium? ›
Benefits of a Moratorium Period
Provides temporary relief from the burden of loan repayments during tough times. Helps you manage your cash flow better, especially when facing unexpected expenses. Not making payments during a moratorium would not negatively impact your credit score.
What are the benefits and disadvantages of a moratorium? ›
Loan EMI Moratorium Pros and Cons - A Quick Look
| Pros | Cons |
|---|
| Immediate Financial Relief - Offers a pause in EMI payments, providing breathing room during financial hardships. | Interest Accumulation - Interest continues to accumulate on the principal amount, increasing the overall loan cost. |
2 more rowsMar 29, 2024
If they still haven't paid rent and continue living in the property by the end of the fourteen days, the landlord can continue with the eviction lawsuit. In the state of New York, landlords may charge a late fee for the late rent payment. They may only do so after the statewide grace period of five days.
Is NYS Erap still available? ›
October 1, 2023 Important Update for ERAP Applicants
New York State ERAP applications stopped being accepted after January 20, 2023, at 9:00pm Eastern Standard Time. Individuals will not be able to submit applications, or complete applications that have been started but not submitted, after 9:00pm on January 20, 2023.
Can you get evicted in NY right now? ›
If a tenant fails to pay rent, the landlord can initiate eviction proceedings. Rent must be at least 14 days late and the landlord must provide a 14-day notice to pay or vacate. A holdover tenancy occurs when a tenant continues to occupy the premises after the lease term has ended or violates lease terms.
Can you stop a warrant of eviction in NY? ›
The Judge may sign your order to show cause and stop the eviction until the case can be heard. In some situations, the judge may sign the order but not stop the eviction. The Judge may also sign the order to show cause, but place conditions, such as paying the rent or bringing proof of funds to pay to court.
In New York State, an eviction of a tenant is lawful only if an owner has brought a court proceeding and obtained a judgment of possession from the court. A sheriff, marshal or constable can carry out a court ordered eviction. An owner may not evict a tenant by use of force or unlawful means.
How long do you have to move out after an eviction in New York? ›
These are the most common reasons a landlord may evict: Failure to Pay Rent: In New York, a rent payment is considered late if it is received five days after the due date. On the sixth day, the landlords can provide the tenant with a 14-day notice to quit. This means the tenant has 14 days to pay the rent or move out.
Can I be evicted in the winter in NY? ›
WINTER EVICTION MORATORIUM IN PREMISES OCCUPIED FOR DWELLING PURPOSES. 1. THE WINTER MORATORIUM PERIOD SHALL COMMENCE AT 12:00 AM ON NOVEMBER FIRST OF A CALENDAR YEAR AND END AT 11:59 PM ON APRIL FIFTEENTH OF THE SUBSEQUENT CALENDAR YEAR.
Did New York ban evictions? ›
On April 20, 2024, a new law went into effect that protects some tenants from huge rent increases and requires a landlord to have a good reason for evicting a tenant.
Why was moratorium important? ›
The moratoriums were an indication of a broad collapse in public support for the war. They were both revealed and fostered a new sense of unity among those opposed to Vietnam and conscription.
What is the purpose of the moratorium period? ›
What is a moratorium period? A moratorium period is a duration when the borrower doesn't have to make the home loan EMI payments. This means that you do not have to start repaying your home loan as soon as your loan gets disbursed to you.
Why is identity moratorium important? ›
Identity moratorium is a status that describes those who are actively exploring in an attempt to establish an identity but have yet to have made any commitment. This time can be an anxious and emotionally tense period as the adolescent experiments with different roles and explores various beliefs.
What is the justification for moratorium? ›
Apply for Personal Loan! A moratorium period is a temporary halt on loan payments, agreed upon with your bank, allowing you to avoid penalties during financial challenges. It provides breathing room to stabilise your finances without the immediate pressure of loan repayments.
