Administration - Explained


This procedure is designed to protect companies from their creditors while a restructuring plan is developed. The type of creditor action that administration will stop includes:-

  • Bailiffs distraining on behalf of rating authorities
  • Landlords distraint for arrears of rent
  • Action by Revenue and Customs & Excise to enforce their debt
Following changes to legislation introduced in September 2003, the administration procedure is now streamlined which has resulted in reduced costs and better returns to creditors. An Administrator can be appointed by filing documents at court and with a few exceptions, the administration must be concluded within a year.

The purpose of the administration must achieve:
  1. Rescue of the company as a going concern or if that is not possible
  2. Achieving a better realisation of the company's assets than in a liquidation
    Only if the neither of the first two purpose are possible, can the administrator use the third purpose:-
  3. Realising property in order to make a payment to the company's secured or preferential creditors.

The Next Step

The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREEPHONE ADVICE LINE 0800 781 0990.

There is  free debt help and advice available through a variety of debt charities. For more information, we recommend you visit https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator Alternatively if you are a business owner, self-employed or in a partnership, we recommend you visit https://www.businessdebtline.org/.

All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. You have the right to a cooling off period of 14 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.
Calls to our free phone number from mobile phones and other networks may be charged.

The Business Debt Advisor is a trading style of The Debt Advisor Ltd.

The Debt Advisor is regulated and authorised by the Financial Conduct Authority Reg No : 606669