credit with company now in admin. what happens next??

sindakit

Ok, i was wondering if anyone knew what happens to credit if a company enters administration. Sound Control recently went into admin and i had credit on some products i bought, is/will this credit wiped?
I've heard it would be cleared from someone but wanted to check how it works cos i doubt they'll send me a letter saying "don't give us money". Do i need to apply/withdraw?

also my friend has similar but his credit got passed to a debt collection agency. Can he dispute this so the dca send it back to Sound Control and then wipe it?

Thanks

tyllwyd

Do you mean that you owe them money (you are a debtor) or that they owe you money (you are a creditor)?

I'm not an expert but my understanding would be ...

If you owe them money and the company has gone into administration, the administrators will be trying to get as much money back as possible to pay the company's creditors, so no, I don't see why they would write off your debt.

If they owe you money, they should be trying to get some money to pay you back (it might be worth writing to say how much you are owed to be sure you are added to the list of creditors), but whether or not you will see any or all of your money back depends on how the administration goes.

TangledMemories_2

If you are a creditor (someone owes money to you) and the company goes to the wall, the administrators put you on a list of "receivers". Thereby, the assets (if any) get liquidated and shared out accordingly.

However, if you owe money to a company in liquidation, that debt is classed as a potential asset and it will be sought to be recouped from you. The administrators will contact you in due course.