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Is Administration Right For My Business?

Last updated: May 9, 2022

The quick answer

Administration is a quick and effective way to protect a company or partnership and stops creditors taking action. You can get into Administration without the creditor’s or shareholder’s consent. This saves a lot of time. It can be the right solution for a business that can not trade out of its problems and needs some time and protection.

In more detail

If your business is in financial difficulty then Administration can be a very effective way to protect it quickly. Administration means that no creditor (someone you owe money to) can take any legal or recovery action against your business. The objective is to protect the business whilst working out the best solution for all concerned.

Once in Administration, all of the business or just part of the business can keep trading. Sometimes selected employees are made redundant in order to slim down the business to make it viable.

Administration lasts for up to one year but has to end eventually, leading to an exit route of either; handing the company back to the directors, a Company Voluntary Arrangement, liquidation or dissolution.

Administration is not usually right for your business if you just want to close it down – in that case liquidation is usually more suitable and cheaper.


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.

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Author: David Kirk - ACA FABRP
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Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott (14th December 2021)



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David Kirk

Licensed Insolvency Practitioner