What is a moratorium?

If a debtor is thinking of applying for bankruptcy, a trust deed or DAS and requires more time to think things over, but is concerned about action that could be taken in the meantime, a debtor could request a moratorium. A moratorium is a six month period of debt relief during which you cannot take any action against debtors for debts they owe you.

If a moratorium is granted, AiB will register this on the Register of Insolvencies and the DAS Register.  During this six month period, you cannot take any diligence against debtors. If a debtor decides to embark on a DAS programme, interest and charges will be frozen from the date of application and written off following successful completion of the programme. The frozen interest, fees or charges can be added back on to the debts if the debtor decides not to proceed with an application or where the DAS payment programme is revoked. Where a debtor enters bankruptcy or is party to a protected trust deed, the trustee will reimburse you with any dividend payable resulting from contributions or assets realised during the administration of the case. You may be entitled to statutory interest accrued if sufficient funds are available.