The administration process, step by step — a UK timeline
From the first Notice of Intention to the day the administration ends, every statutory deadline in one place — grounded in Schedule B1 of the Insolvency Act 1986 and the 2016 Insolvency Rules.
- • Board takes IP advice
- • Cash-flow forecast to 13 weeks
- • Directors resolve to appoint
- • Notice of Intention filed (interim moratorium starts)
- • Notice of Appointment filed at court
- • Full statutory moratorium in force
- • Administrator takes control of company & assets
- • Bank accounts frozen and re-opened in admin
- • Employees notified; contracts reviewed
- • Notice to creditors within 7 days (Rule 3.35)
- • Gazette advertisement
- • Statement of Affairs from directors (21 days)
- • Marketing / going-concern sale if planned
- • Proposals sent within 8 weeks
- • Creditor decision on approval
- • Business sale, CVA negotiation, or wind-down
- • 6-monthly progress reports to creditors
- • Committee meetings if constituted
- • Asset realisations & recoveries
- • Move to CVL (dividends available)
- • Dissolve (no assets)
- • Return control to directors (rescue succeeded)
- • Final report & release
Every statutory deadline in one table
| Trigger | Deadline | Statute |
|---|---|---|
| Notice of Intention filed | Interim moratorium runs 10 business days | Sch B1 para 44 |
| Notice of Appointment | Notify creditors within 7 days | Rule 3.35 IR 2016 |
| Statement of Affairs | 11 days from admin's notice (directors) | Sch B1 para 47 |
| Administrator's proposals | Within 8 weeks of appointment | Sch B1 para 49 |
| Initial creditor decision | Within 10 weeks of appointment | Sch B1 para 51 |
| Progress reports | Every 6 months | Rule 18.3 IR 2016 |
| Automatic end | 12 months from appointment | Sch B1 para 76(1) |
| Extension (creditor consent) | Up to 12 further months | Sch B1 para 76(2)(b) |
| SIP 16 statement (if pre-pack) | Within 7 days of sale | SIP 16 (R3) |
Worked example — Anvil Manufacturing Ltd
Day 0: Board files Notice of Intention. Interim moratorium halts a pending winding-up petition and HMRC enforcement.
Day 8: Administrator appointed via out-of-court route (Sch B1 para 22). Bank freezes accounts, re-opens in the administration's name.
Day 15: Notice to creditors issued; Gazette advertisement placed. Trade continues while a purchaser is sought.
Day 42: Going-concern sale to trade buyer completes. Employees transfer under TUPE (see Employees in administration).
Day 55: Proposals issued: sale completed, wind-down of residual entity, dividend prospect for unsecured creditors of ~4p/£.
Day 90: Creditor decision approves proposals by correspondence.
Month 10: Realisations complete. Administrator moves company to CVL under Sch B1 para 83 to pay dividends.
Related reading
Frequently asked questions
How long does administration take from start to finish?
Statutory ceiling is 12 months from appointment (Sch B1 para 76). Around 60–70% of cases run past that and are extended by up to 12 months with creditor consent, or longer by court order. Simple pre-packs can be through the trading exit in under 8 weeks.
What is the very first step?
The board takes formal insolvency advice. Once it is reasonable to conclude the company is or is likely to become insolvent, directors' duty shifts from members to creditors' interests — confirmed by the Supreme Court in BTI 2014 LLC v Sequana [2022] UKSC 25.
What is the Notice of Intention (NoI)?
A filing at court under Sch B1 para 26 signalling that the directors or company intend to appoint an administrator out of court. It triggers a 10-business-day interim moratorium that stops most enforcement action while final steps are prepared.
When does the moratorium start?
An interim moratorium starts the moment a valid Notice of Intention is filed. It becomes a full statutory moratorium (Sch B1 paras 42–44) once the administrator is appointed and the Notice of Appointment is filed.
How quickly must the administrator issue proposals?
Within 8 weeks of appointment (Sch B1 para 49). Proposals must be sent to every known creditor and filed at Companies House. Creditors then vote on approval — typically by correspondence or a decision procedure under the 2016 Rules.
Do creditors always vote?
Not always. If the administrator concludes there will be no funds to distribute beyond secured/preferential creditors and there is no realistic prospect of rescue, they can skip the creditor decision under para 52(1)(b) — but must give creditors a chance to requisition a meeting.
What happens in the 8–52 week window?
The strategy is implemented: business sale, going-concern trade-out, CVA negotiation with the administrator's support, or orderly wind-down. The administrator reports to creditors at least every 6 months (Rule 18.3 IR 2016) and consults any creditors' committee.
How does administration end?
Four main exits: (a) moved to Creditors' Voluntary Liquidation under Sch B1 para 83; (b) company dissolved under para 84 (no assets left); (c) control returned to directors under para 79; (d) rescue completed and administration discharged. Choice depends on residual assets and distributions.
Can the timeline be extended?
Yes — once by up to 12 months with secured and unsecured creditor consent (para 76(2)(b)), and by court order for longer periods. Extensions are common in complex cases with ongoing litigation or asset realisations.
Where can I read the statutory framework?
Schedule B1 of the Insolvency Act 1986 (inserted by the Enterprise Act 2002) is the primary source. Rule sets: Insolvency (England and Wales) Rules 2016. Professional standards: SIP 7 (presentation), SIP 9 (fees), SIP 16 (pre-packs).