Schedule 3: Winding-up and Bankruptcy Petitions Prohibition on presenting a bankruptcy order petition in relation to a protected rent debt
Paragraph 2 puts in place a restriction on landlords from petitioning for bankruptcy against a tenant such as a sole trader relating to protected rent and commenced during the relevant period.
	Paragraphs 2 and 3 apply when a protected rent debt is owed by an individual.
	In order to be able to petition for bankruptcy, a creditor must show that the debtor is unable to pay or has no reasonable prospects of being able to pay their debt. To show this, the creditor must either serve a statutory demand or there must be a judgment or order of a court in favour of the petitioning creditor in respect of the debt. Sub-paragraph (2) prevents a petition being presented relying on a statutory demand by a landlord made during the relevant period in respect of a protected rent debt. Sub-paragraph (3) prevents a petition being presented in relation to any protected rent if the claim for the debt was issued during the relevant period.
	Until these provisions came into force, petitions could continue to be presented based on statutory demands and claims which would not be valid once the provisions were in force. If such a petition is presented, the court may make an order to restore the position to what it would have been had the petition not been presented.
	Once a petition is presented an interim receiver or a special manager may be appointed by the court. Sub-paragraph (5) provides that if it appears to the interim receiver or the special manager that the petition is one described in sub-paragraph (2) or (3), they must refer the matter to the court to determine whether the court should give an order to restore the position to what it would have been had the petition not been presented.
	The interim receiver and special manager may be permitted by the court to do certain things with the debtor’s estate. Sub-paragraph (6) provides that they are not liable in civil or criminal proceedings for anything done pursuant to such a court order.
	Sub-paragraph (7) provides the definition of "relevant period" for the purposes of paragraph 2 as beginning on 10 November and ending on the day when arbitration is concluded.
	Sub-paragraph (8) defines "claim" for the purpose of this paragraph.
	Sub-paragraph (9) provides that this paragraph is to be treated as though it came into force on 10 November 2021.