Administration – The disadvantages 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 disadvantages to applying for an Administration Order.
- The court charges you for this service, and the fee can be anything up to 10% of the debt.
- You will need enough regular income to make monthly repayments.
- You can only apply for a personal Administration Order if you owe less than £5,000 and have a County Court Judgement.
- If you miss a personal Administration Order payment, the Order could be cancelled and you could face bankruptcy.
- If a business has entered into process to be rescued as a going concern, and the process fails, the business could end up being liquidated.
It is really important that you also look into the advantages of administration and the alternatives to administration before making the decision to apply for an Administration Order.
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 – Voluntary and involuntary administration
- Administration – Insolvency and administration
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