Contact David Kirk by email direct by clicking on his name

01392 474303

How To Avoid Going Into Administrative Receivership

The quick answer

One of the easiest ways to avoid Administrative Receivership is to pay back the bank debt that you owe. Alternatively, keep a dialogue going between you and the bank and try and convince them that it is better for you to keep trading.

In more detail

Administrative Receivership occurs where a bank or lender appoints an Administrative Receiver because you owe the bank or lender a debt that has not been paid back. They will only be able to do this if they have a debenture and it was registered at Companies House before the 15th September 2003.

The bank or lender will only start the process of appointing an Administrative Receiver if you breach the terms of your loans or overdrafts and they are concerned about how they will get repaid.

In some cases, the bank will be concerned because you have not kept a dialogue going with them or you suddenly post a very bad set of figures without explanation. Remember, all that the bank want is for you to be successful and for them to be repaid their money in accordance with the terms of the loan they gave you.

Overall, banks do not like forcing Administrative Receivership and it is a last resort.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

More questions in this section

David Kirk


David Kirk ACA FABRP

We have just worked with Kirks to complete the closure of our company. Everything went smoothly and professionally. I would recommend this firm and the staff who were very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill



Sign up to our newsletter

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner