Partnership Administration - Frequently Asked Questions

How does administration work?

The partners or your creditor will make an application too court for an administration order to secure a partial moratorium to start the process.

What will happen to my creditors?

The Insolvency Practitioner will act as the administrator and will keep all your creditors informed of the intentions of the IP. If a PVA is proposed the creditors will be required to vote in support or against the proposal.

Do the partners remain in control during administration?

No, the Administrator will be responsible for running the business to make any necessary changes to management or structure of the partnership. However, the partners will be required to assist.

How will HMRC react?

HMRC will want information of the administrator's intentions and what the desired outcomes will be. If a PVA is proposed, HMRC will have the right to vote at a creditors meeting.

Can I lose my home?

This will depend on the severity of the situation. Our expert IP will try and make all the necessary changes without the need to sell your home.

What happens to parts of the business that are not viable?

The Administrator will evaluate the viability of the business and decide on the best possible outcome. It may mean restructuring, using a PVA or selling part or all of the business.

How long the administration last?

As long as the partnership require, up to a period of 12 months.

What happens when the administration order comes to an end?

The partnership may be:

• Sold in full or in part
• Entered into a Partnership Voluntary Arrangement and continue trading
• Made to sell its assets
• Required to enter into Liquidation
• Be struck off