Objectives of Moratoriums
1. Reduce Hardship: Moratoriums are commonly utilized to provide short-term assistance to people who are having financial troubles. For example, a loan moratorium may be imposed during a recession to give debtors time to recover before obligations start up again.
2. Encourage the Solution of Problems: A moratorium may provide a window of time for addressing fundamental problems. A moratorium on debt collection during bankruptcy proceedings gives the debtor and creditors time to work on a restructuring plan. In a similar vein, a construction moratorium permits zoning changes or environmental impact reports.
3. Avoid Unfavorable Outcomes: Moratoriums can be utilized to prevent unfavorable outcomes. For instance, preventing evictions following a natural disaster shields displaced individuals from losing their houses.
4. Permit Further Research or Debate: Before taking final action on a complicated matter, a moratorim may occasionally be declared to allow for more study or public discussion. This may be significant when analyzing the possible effects of a new law.