Articles => Administration Orders
How an Administration Order works
Published on Friday, 18th of February 2011 by Robert Blane. This article has previously been viewed 168 times and was last read on Saturday, 19th of May 2012 at 16:13:10.
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.
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.
