Road Map Out of Covid - Legislative Restrictions Extended

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Road Map Out of Covid Legislative Restrictions also extended


The Government announced yesterday that it planned to extend a number of restrictions on enforcement particularly in the insolvency and commercial landlord sectors. This includes the following:


  1. Extension of the existing restrictions on statutory demands and winding up petitions 3 months to 30 September 2021

  2. Extension of the restrictions on rent related forfeiture of business tenancies by 9 months to 25 March 2022

  3. Extension on the restrictions on commercial rent arrears recovery action (CRA) by 9 months until 25 March 2022


There is also an arbitration process to be introduced in respect of rent arrears of businesses which have been affected by the pandemic which will require a conciliatory approach in dealing with such circumstances in many instances in an attempt to buy those struggling, as a result of the pandemic, more time in dealing with financial struggles.  The flip side is likely to be more pain for landlords who are similarly facing difficulties and we await, with interest, the detail which should map out how the Government attempts to balance this.


It should be noted that the insolvency restrictions do not only apply in the landlord and tenant sector and will affect all creditors during the period concerned. They will not however affect personal debtors therefore it is possible to take action against individual debtors which can include sole traders (including those who are commercial tenants).


There are inevitably some limited exceptions to the restrictions which are fact specific so it is important to get legal advice before going down this road so as to not expose you to any unnecessary adverse costs risk.


If you are either a debtor or creditor facing difficulties and wish to seek advice in terms of what your options are in dealing with any debt then please do contact our Commercial Litigation Team.

 Helen Lyne, Executive Associate Solicitor, Litigaiton.

 Hayley Bartram, Solicitor, Litigaiton.

 Natalie Wilson, Legal Assistant, Litigaiton.