Administration Order

If you have debts of less than £5,000 and have at least one CCJ, you can apply for an Administration Order at the County Court. This allows you to settle your individual debts by making one agreed monthly payment to the Court, which is then shared between your creditors on a pro-rata basis. During the Administration Order, as long as payments are maintained, your creditors are not allowed to continue with recovery action. The Court takes 10% of your monthly payment as a fee. If you cannot pay your debts off in 3 years, the Court may grant a Composition Order which lowers the amount you have to repay.

Applying for an administration order

There is no application fee for an Administration Order and application is a simple process. All you need is form N92, available from your local County Court office.

When you submit your application, the Court will use the information you have provided to decide how much money you need to pay each month. It will also decide whether any creditors should be excluded (perhaps based on creditor objection) and if a Composition Order is a better solution for you. The Court can also decided to have the payment deducted directly from your salary but you can object to this if you feel such an order would affect your employment.

If creditors object to your Administration Order, a hearing will be held before a District Judge in his chambers. If you do not attend this hearing, your application will be dismissed. In practice, creditors generally do not object and are included.

Advantages:

  • It is a quick and simple process with no application fee
  • You will only have to make one payment each month to address all of your debts, and this payment won't change
  • After the date of the Administration Order, creditors can no longer add interest or charges or pursue you any further
  • If the Court grants a Composition Order, you will have some debt written off
  • You avoid the stress of creditor recovery action, court appearances, bailiff visits, etc

Disadvantages:

  • Some debts may be excluded, these creditors can continue with enforcement action
  • If you default on payments, the Administration Order will be revoked and restrictions will be placed on you affecting your future ability to get credit
  • If your debts are more than £5,000, you cannot apply
  • The Court or a creditor can ask for a review to make changes to the repayment amount
  • It may take a number of years to repay the debts
  • The details of an Administration Order stay on your credit file for 6 years

Find out more

For more information about an administration order, please contact us for some free, no obligation help and advice.

Campbell Dallas Debt Solutions - if you have debt problems, we have debt solutions.

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