What is the difference between liquidation and voluntary administration?

• The primary difference between the two is that an administration typically aims to help the company repay its debts in order to avoid insolvency and continue trading if possible where a liquidation involves winding up the company’s affairs and dissolving the company.
• Often a liquidation follows an administration. However the administration process gives the company the chance to reorganise its affairs so that it may continue to operate and become profitable.
• You can use our free and anonymous Ask a Lawyer service if you have a particular issue you want to know more about.