In forceAmended2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 15 · Debt Repayment Scheme

293. Moratorium under debt repayment scheme, etc.

In plain English

During a debt repayment scheme, creditors under it cannot act against the debtor or the debtor's property without the court's permission. Secured creditors may still deal with their security. A creditor keeps the benefit of an execution or attachment only if it is completed before the scheme takes effect. The court may set this rule aside in the creditor's favour.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

Amended

Last amended by an amending law of 2021.

(1)

Subject to subsection (2), during the period beginning on the effective date of a debt repayment scheme applicable to a debtor and ending on the date on which the scheme ceases under section 298(1) —

(a)

no creditor to whom the debtor is indebted in respect of any debt provable under the scheme has any remedy against the person or property of the debtor in respect of that debt; and

(b)

no action or proceedings may be proceeded with or commenced against the debtor in respect of that debt,except by the permission of the Court and in accordance with such terms as the Court may impose.

(2)

Subsection (1) does not affect the right of any secured creditor to realise or otherwise deal with the secured creditor’s security in the same manner as the secured creditor would have been entitled to realise or deal with it if that subsection had not been enacted.

(3)

Where the creditor of a debtor (to whom a debt repayment scheme applies) has obtained an enforcement order against the goods or lands of the debtor, or has attached any debt due or property belonging to the debtor, the creditor is not entitled to retain the benefit of the enforcement order or attachment against the debtor unless the creditor has completed the execution of the enforcement order or attachment before the effective date of the scheme, except that —

(a)

a person who purchases in good faith under a sale by the Sheriff any goods of the debtor on which an enforcement order has been executed acquires in all cases a good title to them against the debtor; and

(b)

the rights conferred by this subsection on the debtor may be set aside by the Court in favour of the creditor to such extent and subject to such terms as the Court thinks fit.

(4)

For the purposes of subsection (3) —

(a)

an enforcement order against goods is completed by seizure and sale;

(b)

an attachment of a debt is completed by receipt of the debt; and

(c)

an enforcement order against land or any interest in land is completed by registering under any written law relating to the registration of land an enforcement order for seizure and sale of property attaching the interest of the debtor in the land described in the enforcement order for seizure and sale of property.