Administration Order faqs | Debt Advice

What is an Administration Order?

Am Administration Order is a court order issued which covers your credit debts and other debts. The order requires you to make a monthly payment to the court. The court then distributes the payment to your creditors on a Pro-Rata basis. Usually the court will take 10% of the monthly payment as a fee for administering the court order.

Whilst you are in an Administration Order, the creditors involved cannot harass you for the payments without first getting the courts authorisation. Any debt collection agencies and/or letters against you should stop when the administration order is in place.

What are the advantages of an Administration Order?

  • An Administration Order can save you time and hassle as the court deals with your debts on your behalf.
  • Interest and charges on the debts are stopped.
  • There is no upfront fee. Just a handling fee, as mentioned above which comes out of your monthly payment.
  • If you apply for a composition order at the same time you apply for an Administration Order, then you could get a fixed payment date. i.e. three years.

Who can apply for an Administration Order?

You can apply for an Administration Order if:

  • You have atleast two debts.
  • You have atleast one county court or High Court judgement against you.
  • Your debts are less than £5,000.

How can I apply for an Administration Order?

  • You can apply by obtaining an N92 form from your local court office. The form comes with guidance on how to complete it.
  • Put the name of your local county court on the form.
  • List your debts on the form, including arrears on priority debts as well as credit debts.
  • List creditor details and account numbers for the court payments. If your creditor has passed your details on to a debt collection agency, provide their address instead.
  • List your family details (if applicable).
  • List your employment details.
  • List you Income, Expenditure and Financial situation.
  • List what you can realistically afford to pay. You will get an idea of this if you deduct your expenditure from your income and see what you are left with.
  • If you are on income support or another benefit, or on a low income, the court may accept a payment between £1 and £5 per month.
  • You need to sign the form infront of a court officer at the court.
  • Take along statements, creditor letters and anything that will show your proof of debt. Include any CCJ's.
  • Photocopy your form for your own records.

What happens after I have completed my application?

  • After your form has been accepted by the court they will notify your creditors of your Administration Order application.
  • Your creditors have 16 days to respond with any objections to the payment amount. They can also request to be removed from the order.
  • If there are no objections and the court staff and judge are happy with the payment offer, then the order will be put in place. If you adhere to your payments, your creditors can take NO further action against you.
  • If there are any problems or rejections, a hearing will be arranged in court with the district judge where you and your creditors will be given a change to state your case. If the issues are resolved, the order will go ahead.
  • When the order is in place you make your payments to the court and they pay your creditors.

How long does an Administration Order last?

An Administration Order has no set length. It will continue until the debts are paid in full. You or your creditors can review the terms and payment amount if and when necessary. However, if a composition order is made along with the Administration Order, you may get a fixed date of completion and have some of your debts written off.
An administration order will remain on your credit reference file for six years.

Problems with applying for an Administration Order?

Different courts in different areas of the country handle Administration Orders in different ways. Your application should never be refused with a court hearing. If you do have to go to a court hearing, you might want to consult a money advice centre or Citizens advice bureau for details of the court policy.
Some of the things that may cause problems in your application are:

  • Debts over £5000
  • Debts in joint names
  • No available income

What will happen when The Administration Order is paid off?

When you have finished paying into your Administration Order you can obtain a "Certificate of Satisfaction" from the court. This form costs £15. Details of your Administration Order are kept by the Registry of County Court Judgements and credit reference agencies. The agencies should mark your file to show the debts and the Administration Order as satisfied.

Other Debt Advice faqs

- Unsecured Debt faqs
- Secured Debt faqs
- Debt Management Plan faqs
- IVA/CVA faqs
- Trust Deed faqs
- Bankruptcy faqs
- Sequestration faqs
- Other/General Debt faqs

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