Insights

Incoming "Lighter" Protections for Debtors

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The Corporate Insolvency and Governance Act 2020 (the “CIGA”) provided protection from action by creditors against companies in financial hardship caused by the Covid-19 outbreak.

From 1 October 2021 the current protections provided under the CIGA will be lifted and replaced by "lighter" protections which shall remain in force during the period starting from 1 October 2021 and ending on 31 March 2022 (unless extended further by the Secretary of State).

The new "lighter" protections restrict a creditor from serving a winding up petition against a debtor if any of the following apply:

  • a debt is for unpaid commercial rent which has been unpaid because of a financial effect of Covid-19;

  • the amount of the debt(s) is under £10,000; or

  • a debtor has not received a notice from a creditor giving the debtor 21 days (see note below) to provide the creditor with a proposal for the repayment of the owed debt.

The 21 day period can be shortened by approval from the court.

For a copy of the legislation please see here.


If you are a debtor and have any questions about whether or not these protections apply please do contact us.

If you are a creditor and have any questions about whether or not you will be able to bring an action against a debtor please do contact us.


Avery Law is the business and trading name for a legal practice carried on by Avery Law LLP. Avery Law LLP is a limited liability partnership, registered in England and Wales, with registered number OC374426, with its registered office at 25 Wilton Road, London, SW1V 1LW.

Avery Law LLP is authorised and regulated by the Solicitors Regulation Authority of England and Wales (SRA ID: 568560).

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