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Administration Orders | Debt Advice
What is an Administration Order?
An Administration Order is a single county court order that covers credit debts and other debts and treats them all as one debt. It allows you to make one single payment to the court every month to cover these debts. The payment is distributed to your creditors on a Pro-Rata basis.
An administration order prevents your creditors from taking any further action against you.
Advantages of an Administration Order | Who can apply for an Administration ORder? | How to apply? | Payments | Duration of an Administration Order | Completion | Other Debt Solutions
Advantages of an Administration Order
- None of your creditors on the list of the Administration Order can take action against you, without the courts permission
- Harassment from creditors will stop
- Can save a lot of time and hassle becuase the court deals with everything on your behalf
- Interest and charges are stopped
- There is no Upfront fee with an Administration order. The court takes 10p from every £1 you pay, as a handling fee.
Who can apply for an Administration Order?
In order to apply for an Administration Order you must have
- atleast 1 County/High Court Judgement against you
- 2 or more creditors
- debts less than £5000
How to apply for an Administration Order
You can apply for an Administration Order by firstly completing an N92 form. This can be obtained from your local court office. You must list all your debts. If you have joint debts and both want to apply, you must apply separately and both include the whole debt on your form. Where a couple make individual applications at the same time and they have joint debt, it may be acceptable to divide the debt equally between the two applications.
For employed applicants an attachment of Earnings order will be made unless they request otherwise. Some applicants will not want their employers to know of their current situation, so they would prefer not to have an Attachment of Earnings Order.
Payments
You must keep up your payments on an Adminstration Order. If you do not, the court can revoke your order and your creditors will be entitled to pursue you for the full maount of the debt. If you feel you cannot afford to pay the amount asked for in the order, maybe due to a circumstantial change you can ask the court to review the order and reduce the payments.
How long does it last?
An Administration Order usually continues until the Debt is paid off in full. Details of your Administration Order will remain on your credit reference file for a period of six years from the date of the Administration Order.
Completion of the Administration Order
On successful completion of an Administration Order you will receive a "Certificate of Satisfaction" from the court. This certificate costs £15. Details of the Administration Order are kept by the Registry of County Courts Judgements and also Credit Reference Agencies, who will mark that you have completed the Order.
More Debt Solutions
If an Administration Order sounds like something you might be interested in, you can discuss it with us at Debt Advice further, in confidence and for free.
If you feel you need more information on other Debt Solutions please see the tables below or contact Debt Advice on our lo-call helpline 0844 56789 44.
Debt Solutions (UK and N Ireland) |
Administration Order
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Debt Solutions (Scotland) |
Sequestration
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