If you have a debt with a business that's going into administration, it's important to know where you stand. Here, we explain what it means for you and what to do if your creditor goes out of business.
What happens when a creditor goes into administration?
A company goes into administration when it has serious cashflow problems and becomes insolvent. It's then put under the management of licensed insolvency practitioners.
If a creditor goes into administration, they’ll no longer offer new credit. However, if you owe money to them, any existing debt will still need to be paid.
I have a debt with a company that's gone into administration, what should I do?
You should continue making your payments towards your debt as normal. In most situations, the administration process won’t affect the repayment term of your credit and if you miss payments you'll be subjected to the firm's standard debt collection process.
If you have any questions, contact the company directly.