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.
There is also Law of Property Act Receivership – this is where you have borrowed on a loan secured against freehold or leasehold property.
