Administration – The advantages of administration

If you are considering entering into the administration process voluntarily, then you should weigh up the pros and cons of the administration process first, to decide whether or not administration is right for you or your business.

There are a number of advantages to applying for an Administration Order

• Once your or your company is in administration, its creditors cannot take any further action against you.
• Any visits from debt collectors or letters or phone calls from your creditors should stop once the administration process has begun.
• The administration process can save you time and effort as the court deals with your debts or your company’s debts on your behalf.
• Any interest that was being added onto the debts are stopped.
• Any other charges that were being added onto the debts are stopped.
• Your fees covering the administration process are deducted by the court/your administrator on your behalf from the payments you make to court/your administrator, so you don’ t have to pay a fee upfront.
• There is now an option for businesses to appoint an administrator through an out-of-court process, which is cheaper than process involving a court application.

It is really important that you also look into the disadvantages of administration and the alternatives to administration before making the decision to apply for an Administration Order.

More information

• Administration – The disadvantages of administration
• Administration – The alternatives to administration
• Administration – What is administration?
• Administration – The administration process
• Administration – What is a composition order?
• Administration – What is an administrative receiver?
• Administration – Voluntary and involuntary administration
• Administration – I can’t afford to make my administration payments
• Administration – Insolvency and administration