Debt respite scheme—jurisdiction (Seculink Ltd v Forbes)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Restructuring & Insolvency analysis: In the first appellate decision at High Court level on the surprisingly far-reaching Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the Debt Respite Regulations), the High Court allowed the creditor’s appeal in a decision which is decidedly creditor-friendly. Sir Anthony Mann held that—(1) the courts retain the jurisdiction at all times to determine whether in point of law a particular debt is a ‘moratorium debt’, regardless of whether a creditor has exercised the review machinery under the Debt Respite Regulations; and (2) where proceedings are live when a moratorium is entered into, a creditor does not need the court’s permission to proceed up to entry of judgment. Written by Tom Morris, barrister at Landmark Chambers.