The moratorium freezes most recovery action
Unsecured creditors generally cannot commence or continue legal proceedings or enforcement action during administration.
Explainer
Recovering a debt from a business in voluntary administration
Voluntary administration triggers an automatic moratorium on most recovery action — but creditors who understand the process can still protect their position and maximise their recovery from what remains.
When a company enters voluntary administration, the appointment of an administrator triggers an automatic moratorium — a temporary freeze — on most legal action and recovery proceedings by unsecured creditors. The moratorium lasts until the administration ends, which may be by a DOCA, return to solvency, or liquidation. For creditors who discover their customer is in administration, the instinct to take immediate action is understandable, but most recovery options are legally unavailable during the moratorium period.
What creditors can and should do is act quickly within the framework the administration process provides — lodging proofs of debt, attending creditors' meetings and making informed votes — to maximise the recovery that is available.
How we help
Recovery tailored to how you get paid
Lodge your proof of debt promptly
The administrator will set a claims deadline — missing it risks exclusion from any distribution.
Attend the creditors' meetings
Creditors can vote on the administrator's recommendations and on any proposed DOCA at the second meeting.
Act within the process, not outside it
The administration framework gives creditors real rights — use them.
Common questions
Frequently asked questions
Can I repossess goods I have supplied under retention of title during administration?
If you have a properly registered PPSR security interest or an effective ROT clause, you may be able to reclaim goods. This is a technical area — get legal advice before acting.
How do I lodge a proof of debt?
The administrator will provide a proof of debt form and a deadline. You need to set out the amount you claim, the basis for it, and attach supporting documentation — invoices, agreements, statements of account.
What if the administration ends in liquidation?
Your proof of debt rolls into the liquidation. Unsecured creditors rank behind secured creditors, employees and certain priority claims — the return to unsecured creditors varies widely.
Can Merion recover a debt once a company is in administration?
Direct recovery is paused during administration, but we can advise on lodging proofs of debt, attending creditors' meetings and monitoring the administration for any distribution.
Get started
Customer entered administration?
Talk to Merion about protecting your position — the first conversation is free.