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KembaraXtra- Financial Terms- administration order
refers to a legal order issued by a court for managing financial or insolvency situations involving individuals or companies.
In personal debt cases, an administration order may be issued by a county court to organize repayment of multiple debts owed by a judgment debtor. The debtor is usually required to repay debts through instalments.
As long as the debtor complies with the repayment terms, creditors included in the order generally cannot take separate legal enforcement action without court permission. This arrangement may help avoid bankruptcy.
Under the Insolvency Act 1986, an administration order may also apply to companies experiencing financial difficulties. The aim is either to rescue the company as a going concern or achieve better results than immediate liquidation.
During administration, the company is managed by an administrator and receives protection from creditor actions while restructuring or recovery efforts take place. Since 2003, out-of-court administration procedures have also been available in certain situations.
refers to a legal order issued by a court for managing financial or insolvency situations involving individuals or companies.
In personal debt cases, an administration order may be issued by a county court to organize repayment of multiple debts owed by a judgment debtor. The debtor is usually required to repay debts through instalments.
As long as the debtor complies with the repayment terms, creditors included in the order generally cannot take separate legal enforcement action without court permission. This arrangement may help avoid bankruptcy.
Under the Insolvency Act 1986, an administration order may also apply to companies experiencing financial difficulties. The aim is either to rescue the company as a going concern or achieve better results than immediate liquidation.
During administration, the company is managed by an administrator and receives protection from creditor actions while restructuring or recovery efforts take place. Since 2003, out-of-court administration procedures have also been available in certain situations.
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