You need to know where you stand if a business you have debt with goes into administration. We explain what it means for you and what you should do.
What happens when a creditor goes into administration?
A company goes into administration when:
- It has serious financial problems, and
- It becomes insolvent
It then becomes managed by licensed insolvency practitioners.
You cannot get new credit from a company in administration. But any money you owe them still needs to be paid.
I have a debt with a company that has gone into administration, what should I do?
Keep making payments towards your debt as normal. In most situations:
- The administration process does not affect the repayment term of your credit
- You are still subject to the firm's standard debt collection process if you miss payments
Contact the company if you have any questions.