Administration Order
What is an Administration Order?
An Administration Order is a court order in which the court itself is responsible for managing the repayments to an individual's creditors.
One of the main benefits of an Administration Order is that it prevents creditors from taking action against the debtor (without the court's permission).
An application for an Administration Order is performed by the debtor, rather than the creditors.
Eligibility for an Adminstration Order depends upon the following criteria:
- Total debts of no more than £5,000.
- That the debtor already has at least one County Court Judgement (CCJ) against them.
Typically, debt arrears for which an Administration Order may be applicable, would include:
- Council tax.
- Credit and/or store cards.
- Fines.
- HP Agreements.
- Mortgage and/or rent.
Once the Administration Order has been agreed, the debtor pays 1 monthly payment to the court and the court then sub-divides this equitably between all of the individual's creditors.
There are no application fees to be paid in setting up an Administration Order.
However, the court does charge a fee for managing the Administration Order and this fee is the equivalent of 10p in the £. This fee is added to the repayments.
Finally, please be aware that in certain circumstances a debtor may only be required to pay back a proportion of their debt. This is known as a Composition Order. A Composition Order may occur when a judge feels that an individual will be unable to repay all their debts within 3 years.
For further information on Administration Orders please call an adviser on 0800 088 7502
