(1) When the Adjudicating Authority admits an application under section 100, a moratorium shall commence in relation to all the debts and shall cease to have effect at the end of the period of one hundred and eighty days beginning with the date of admission or on the date the Adjudicating Authority passes an order on the repayment plan under section 114, whichever is earlier.

(2) During the moratorium period—

1. any pending legal action or legal proceeding in respect of any debt shall be deemed to have been stayed;
2. the creditors shall not initiate any legal action or proceedings in respect of any debt; and
3. the debtor shall not transfer, alienate, charge or encumber his assets.