Administration (insolvency)

Okay kiddo, so administration is like when someone owes a lot of money and they can't pay it back. When this happens, the people or the companies that the person owes money to can ask the courts for help. The courts will then appoint someone called an administrator to help sort out the person's finances.

The administrator's job is to figure out how much money the person owes and to who. They will also try to find ways to pay back the money owed to the people who are owed it. Sometimes this means selling things that the person owns to get money or coming up with a payment plan.

The reason this gets tricky is because often times the person who owes money won't have enough money to repay everyone. So the administrator has to figure out who gets paid first and how much they get. This is called "prioritizing creditors" and it means that important debts like taxes might get paid before less important debts like credit card bills.

Overall, administration is a way to help people who owe too much money and can't pay it back find a way to get back on track with their finances.