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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.