How long does administration last?
Twelve months by default, extendable to 24 by creditor consent, and beyond by court order. Here are the rules and the ranges you should expect in practice.
Typical durations by case type
| Case type | Typical range | What drives it |
|---|---|---|
| Pre-pack sale (clean) | 3–9 months | Debtor collection, dividend calc, exit filings |
| Going-concern trade + sale | 8–18 months | Trading period + realisation of stock/property |
| Wind-down / asset sale | 6–14 months | Piecemeal realisations, leasehold surrender |
| Group / cross-border | 18–36 months | Intercompany reconciliation, foreign proceedings |
| Litigation-heavy | 2–5 years | Clawback, D&O, pension disputes |
How extensions work in practice
The administrator reviews progress against proposals and, typically 6–8 weeks before the 12-month expiry, prepares an extension proposal. Consent is sought from every secured creditor in writing and from unsecured creditors via a decision procedure (usually correspondence, sometimes a virtual meeting).
For court extensions — needed if any secured creditor withholds consent, or if a further 12 months isn't enough — the administrator applies under CPR Part 8 with a witness statement setting out progress, remaining tasks, and why the extension is necessary. Extensions of more than 12 months are common in insurance-scheme, group and cross-border cases.
See Extension of administration for the full procedure and consent thresholds.
Frequently asked questions
What is the statutory maximum?
Twelve months from the date the administrator is appointed (Schedule B1 para 76(1), Insolvency Act 1986). The office holder is automatically discharged unless an extension is obtained beforehand.
How is an extension granted?
Two routes: (a) consent of secured creditors and a majority of unsecured creditors — up to 12 additional months (para 76(2)(b)); (b) court order — for any length, unlimited number of times (para 76(2)(a)).
Do extensions need to be filed?
Yes. A notice of extension by consent is filed at Companies House and served on creditors within 5 business days. A court extension is embodied in a sealed order and filed the same way.
What is the typical duration for a pre-pack?
A well-run pre-pack completes the sale on day one, but the shell entity typically sits in administration for 3–9 months while dividends and residual claims are resolved, then exits to CVL or dissolution.
What about a going-concern trading administration?
8–18 months is typical. The administrator trades on while marketing the business, then closes or sells. Longer if there is a book of debtors or ongoing litigation.
Complex or high-litigation cases?
Two, three, even five years is not unusual. Group cases, pension deficits, cross-border assets, and Insolvency Act clawback claims can all require repeated court-ordered extensions.
Can administration be shortened?
Yes. If proposals are met (e.g. sale complete, funds distributed) the administrator files a notice of end under Sch B1 para 79 (return control), para 83 (move to CVL) or para 84 (dissolution).
What ends the administration automatically?
The expiry of the statutory 12 months without a valid extension. The administrator ceases to hold office and any remaining assets fall back to the company or move to a follow-on liquidation.
Do creditors have a say on extensions?
Yes — for consent extensions, unsecured creditors vote by decision procedure. Secured creditors give consent in writing. Objecting creditors can apply to court under para 74 for review.
Where can I read the duration rules?
Sch B1 IA 1986 paragraphs 76 to 79; Rule 3.54 Insolvency (England and Wales) Rules 2016 governs extension procedure; SIP 9 covers extension fees.