Administration – The alternatives to administration

Alternatives for businesses

Businesses should consider a company voluntary arrangement or liquidation as alternatives to the administration process.

A corporate voluntary arrangement is when your company makes an agreement with its creditors by proposing an arrangement by which to settle its debts which has been approved by the court. In a corporate voluntary arrangement, your company has formally agreed terms with its creditors on how to settle its debts.

When a company is liquidated it is brought to an end, stops trading and ceases to exist. Any assets and property of the company are redistributed to creditors.

You may find this link useful for  a discussion about your circumstances.

Alternatives for individuals

Individuals should consider an individual voluntary arrangement or bankruptcy as alternatives to the administration process.

An individual voluntary arrangement is when you make an agreement with your creditors by proposing an arrangement by which to settle its debts which has been approved by the court. In an Individual voluntary arrangement, you have formally agreed terms with your creditors on how to settle your debts.

Bankruptcy is a way of dealing with personal debts that you cannot pay when it becomes due. Whilst you are bankrupt your non-essential assets (property and possessions) and excess income are used to pay off your debts. After a period of time (usually one year) most or all of your outstanding debts are “discharged” (written off) and you can make a fresh start. You may find this link useful for  a discussion about your circumstances

More information

• Administration – What is administration?
• Administration – The administration process
• Administration – What is a composition order?
• Administration – What is an administrative receiver?
• Administration – The advantages of administration
• Administration – The disadvantages of administration
• Administration – I can’t afford to make my administration payments
• Administration – The alternatives to administration
• Administration – Insolvency and administration
• Administration – Voluntary and involuntary administration
• Administration – Voluntary and involuntary administrationAdministration - Voluntary and involuntary administration
• What is an individual voluntary arrangement?
• What is liquidation?
• What is bankruptcy?