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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.
Worried about not being able to repay what you owe?
We are here to help.
Get debt help now
Can I get a refund?
Some customers may be able to make a claim for compensation.
Compensation depends on:
- Whether your complaints are eligible
- The process of the company's closure
I am a StepChange client with a debt to a closing business, what should I do?
Keep making your monthly DMP or TPP payments as normal.
We will keep an eye on the situation and make sure your payment gets where it needs to be.
Your loan, credit card or store card is still a qualifying debt.
The company going into administration should not impact your DRO.
Keep making your IVA or trust deed payment as normal.
We will keep an eye on the situation and make sure your payment gets to where it needs to be.
The debt can still be included in your bankruptcy or sequestration.
The creditor in administration should not impact your solution.
Your official receiver (OR) or Accountant in Bankruptcy (AiB) should be aware of the situation.
My debt management plan (DMP) company closed down
Debt management firms may close for:
- Failing to meet the standards expected by the Financial Conduct Authority (FCA) or
- Financial problems
If your DMP company has closed down, you may be wondering:
- Where you stand
- If you can carry on with the arrangement
Find out more here
I am worried about my debt, what should I do?
If you are worried about your debt, get debt advice. Our experts can help to find the best solution for you. Our free, impartial and confidential advice is tailored to your situation.
