Voluntary Administration

Voluntary Administration is an insolvency process that gives company directors a chance to save their company and the underlying business.

If a company cannot pay its debts as and when they fall due, the directors should appoint a Voluntary Administrator to avoid becoming personally liable for the company’s debts. The appointment of a Voluntary Administrator will suspend all creditor recovery actions which will give the directors and or shareholders time to formulate a restructuring plan.

The appointment of a Voluntary Administrator will also allow trading operations to continue whilst a restructuring plan can be put in place.

Following the appointment of a Voluntary Administrator there are 3 possible outcomes: