An Administration Order is a single county court order that you can apply for if you have debts totalling no more than than £5,000 to two or more creditors and if you have a County Court Judgement against you that you cannot pay. It allows you to make one single payment to the court every week, month or quarter to cover these debts. The payment is then distributed to your creditors proportionately according to the amounts you owe them.
An administration order prevents your creditors from taking any further action against you.
Read on to find out more about an Administration Order or fill in the form and one of our advisors will contact you to advise on your debts.
In order to apply for an Administration Order you must have
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.
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.
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.
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.
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: