Administration – can I get my money back?

Pay in cash, via cheque or by bank transfer?

This is where it gets tough.

Generally speaking, you don't have any protection when paying by cash, cheque or bank transfer. However, do remember that if you part-paid by credit card (even if this was only by a penny) and the goods cost more than £100, you're covered by Section 75.

Sometimes the company sets up specific procedures, otherwise your best route is to apply to the administrator for a refund, by adding your name to the list of creditors. But it's not likely to yield much, maybe 10% back at best.

What happens to gift vouchers?

If you've gift vouchers for a company that's gone into administration, then likely it's going to be tough luck for you.

However, don't chuck them away as soon as you find out that a firm has gone into administration. It's up to the administrators to decide whether the business will be wound up, or whether they want to continue to operate it as a going concern in the hope of attracting a buyer. And in the second scenario, you may still be able to spend your vouchers.

If the gift vouchers do turn out to be worthless, you could try making a chargeback claim. It's not guaranteed to work, and definitely won't if the gift vouchers were bought in a different store (for example, if you bought Argos vouchers at Sainsbury's and Argos went under), but it's worth a shot.

Finally, if nothing else works, you can apply to the administrators to be registered as a creditor of the business that's in administration. However, bear in mind that you'll join a long list of creditors, many of whom will be owed £1,000s by the business. If you get anything back, expect it to be a fraction of the value of the gift card.

Realistically, the best way to minimise the chances of you losing out is to spend gift vouchers as soon as you get them. The less time you hold on to them, the less likely it is that the company will go bust in the meantime.

For what 'Sad Fart' means in practice and what exactly constitutes your statutory shopping rights, see our Consumer Rights guide. Tool up on this knowledge.

It's then that the Section 75 rule above really comes into its own (if you have paid by credit card). That's because you have exactly the same rights with a credit card as with the retailer, which includes a breach of those statutory rights as well as administration, so you can ask the credit card provider for a refund along the same lines.

If you bought on a debit card, or on a credit card but it was for under £100 – meaning you're unable to use Section 75 – it's worth trying the Chargeback procedure instead.

Again, those who've paid in any other way will find this harder, but you can still make a claim to the administrators. If it doesn't agree to pay you, you'll simply join the queue of creditors, though your chances of getting any money are slim.