Voluntary Administration  - some insights

The Voluntary Administration process was created by the “insolvency industry participants” to make it easy for a director to appoint an Insolvency administrator to their company. The first often overlooked issue is it the best option or will you regret this decision?

Most of the articles and guides you will see on various Liquidator's websites are written by Liquidator's and are designed to get you to appoint them as Voluntary Administrators. The catch, and rarely spoken about,  is that approximately 75% of Voluntary Administration's fail and the company ends up in Liquidation. In short the appointment of a Voluntary Administrator in 75% of cases leads to your company ending in liquidation, just what you were trying to avoid!

This article is written in March 2025 and considers the current landscape that businesses operate in. We also fully explain the process with the unpleasant or "uncomfortable" parts disclosed. 

Follow the link to the article, VOLUNTARY ADMINISTRATION - A SIMPLIFIED GUIDE  which explains the VA process in layman’s terms “2025 style” and focuses on how to achieve a positive VA result and not be a victim of the process! Also follow the link to the news article titled "The Perils of Liquidation" to discover why Liquidation should be avoided at all costs.

The most important fact to acknowledge is that in recent times the makeup of the list of creditors for most companies has changed dramatically and with it so have the practicalities of the Voluntary Administration process. Gone are the days of hundreds of creditors on the list which led to a robust voting process in VAs. These days we have less creditors, and in almost 100% of cases one very large creditor which I’m sure readers know who this is. We will nickname this creditor the “last resort Bank of Australia” (BOA).

The BOA have earned this nickname as they make unsecured personal loans to all businesses in Australia for an unlimited amount without any questions being asked! When the BOA has a problem, it likes to keep dealing with the “problem clients” as long as the client can pay the “loan” back in full over 24 months together with interest and penalties. The problem client must also pay any amounts owing monthly for current dealings with the BOA. If anyone has been a problem client of  the BOA, and has successfully achieved this end result please contact us urgently so we can acknowledge your performance!