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  • #978249
    nev
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    What does BY ADMINISTRATION mean

    As in
    Someone is insolvent BY ADMINISTRATION

    Does this mean they where forced to declared insolvency

    #1105682
    JacquiPryor
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    Hi Nev,
    It may help if you could provide a little further info on why you are asking? (Are you an employee or a customer of a company under administration?)

    Generally speaking, administration is one of several corporate processes a financially troubled company may go through. Usually, this would occur if the company had determined that it was insolvent, or likely to become insolvent.

    The phrase is your post “Someone is insolvent BY ADMINISTRATION” doesn’t make a huge amount of sense to me, which is why I asked for a little more information. This statement makes it sound like someone became insolvent because of the administration, which is not how it works really. If you could share a bit more detail I am sure we can chip in to help answer :)

    #1105683
    nev
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    JacquiPryor, post: 117307 wrote:
    Hi Nev,
    It may help if you could provide a little further info on why you are asking? (Are you an employee or a customer of a company under administration?)

    Generally speaking, administration is one of several corporate processes a financially troubled company may go through. Usually, this would occur if the company had determined that it was insolvent, or likely to become insolvent.

    The phrase is your post “Someone is insolvent BY ADMINISTRATION” doesn’t make a huge amount of sense to me, which is why I asked for a little more information. This statement makes it sound like someone became insolvent because of the administration, which is not how it works really. If you could share a bit more detail I am sure we can chip in to help answer :)

    Thanks
    OK
    I went into into an Insolvency situation around a years ago registered via ITSA etc
    Wasn’t force into it I nominated to do (really had no choice)
    After having a lot of non paying clients (I’m an electrical contractor)
    BTW I still run this business part time (Have a casual paying job)

    Around 5 years ago I ran a retail business that required me to have a Second Hand dealers License that I cancelled when I closed the shop

    I inquired about getting my Secondhand dealers License back for another small venture only to be told I cannot if I am insolvent By Administration

    My thoughts are I’m insolvent by choice not By Administration

    #1105684
    JacquiPryor
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    Gotcha – thanks for the extra information, as I am sure this will help others respond a bit more specifically to you. (NB: I am not an accountant or such so the following is based on general understanding).

    What I can see looking at the ITSA website, is there are different options to ‘deal’ with your own personal insolvency, and in some circumstances you will be restricted from carrying on a business for a period of time. I located this page: http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Debtors-%3EDebtors#comparitive at their website, that discuss the different types of administration options you will have had previously, and this page gives an overview of features of each option.

    Even if you volunteer yourself insolvent the process is still an administration – it’s like a voluntary administration rather than an ordered administration, so the result is still the same; that until the conditions of your ‘administration option’ (whether by choice or not) are satisifed then you may not be able to get the license.

    Hope this helps. Might be worth getting out your paperwork with ITSA to figure out the option chosen and then looking at the page above to see if that answers your question. Hopefully some others in the know will be along soon to help answer.

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