IVA Glossary
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Administration Order
Whenever a company's financial status is becoming threatened by insolvency, an administration order may be issued. This order will guarantee that the company will be safeguarded from legal action by its creditors. This way all the assets that the company owns and the business itself is being taken under just administration, and will be going through a restructuring process, making sure that the whole process itself is fair.
For example, if a debtor passes away, whilst leaving behind a fully owned real estate, an administration order will take over the process and will decide through which methods will be the creditors allowed to recuperate their losses. In most cases, the property will be sold, the owed money will be distributed to the creditors, and what remains will be distributed to the deceased's immediate family (or, everything will be officiated as stated in the will, if there exists one).
Administration orders are being issued by the court, and there are also some fees included. In order for a debtor to become eligible for the issuing of an administration order, there are some criteria that must be met (the debtor must have at least 2 creditors and also must make proof of one existent CCJ that has been issued against him/her).
For example, if a debtor passes away, whilst leaving behind a fully owned real estate, an administration order will take over the process and will decide through which methods will be the creditors allowed to recuperate their losses. In most cases, the property will be sold, the owed money will be distributed to the creditors, and what remains will be distributed to the deceased's immediate family (or, everything will be officiated as stated in the will, if there exists one).
Administration orders are being issued by the court, and there are also some fees included. In order for a debtor to become eligible for the issuing of an administration order, there are some criteria that must be met (the debtor must have at least 2 creditors and also must make proof of one existent CCJ that has been issued against him/her).
