Moratorium

What Does Moratorium Mean?

1) A period of time in which there is a suspension of a specific activity until future events warrant a removal of the suspension or issues regarding the activity have been resolved.

2) In bankruptcy law, a legally binding halt of the right to collect debt.

Moratorium explanation:

1) For example, if a company is going through rough times it might have a moratorium on advertising spending. In other words, to cut costs, it won't spend any money on advertising.

2) Such action may be imposed by the government, or taken voluntarily by a private business, usually in times of economic crisis, in order to provide people with time to stabilize their finances before dealing with potential problems such as a mortgage default and foreclosure.