Administration Order (Admin Order)
An Administration Order is a court based procedure whereby the debtor makes regular payments to the court which in turn shares them amongst the creditors.
There are no fees to pay with Administration Orders however the court will take a small percentage of the payments you make towards its costs.
To be able to ask the court to make an Administration Order a debtor must:
- have debts of £5000 or less and have at least two creditors
- have a county court judgment (CCJ) or High Court Judgment entered against them
Some Advantages
- none of the creditors listed in the Admin Order can take further action without the courts permission
- the court deals with the creditors and distributes the payments to them
- no up front fees
- you can apply to make payments for a limited time, such as 3 years, using a composition order, if payments are maintained anything still owed on your debts does not have to be paid
- if circumstances change / worsen, an application can be made to reduce payments
Some Disadvantages
- creditors can object and ask the court to be left out of the order, however the court need not agree
- if payments are not maintained the order may be revoked (cancelled) and the protection of the court lost
- adverse impact on credit rating
Details of Administration Orders can be obtained from the County Court
Useful Contact
- Her Majesty's Courts Service
0845 456 8770
- For best results, please answer all questions before continuing
- If you want to explore the other options for dealing with debt you can read about other options