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Administration Orders

How does an Administration Order work?

An Administration Order is a single court order that deals with all your unsecured debt plus other minor debts such as arrears on council tax. The Order allows you to consolidate your debts and make a single reduced payment each month.

The court divides this payment amongst your creditors, deducting a 10% administration fee for this service.

Once an Admin Order is placed, the creditors mentioned in the Order cannot take debt recovery action against you without the Court's permission.

Who can apply for an Administration Order?

You can make an application for an Admin Order if -

• You have at least two separate debts (i.e. owed to different creditors)
• You have at least one County Court or High Court Judgment against you.
• The total of your debt is less than £5,000. 

To apply you will need to complete a N92 form that you can get from the court. Be sure to mention all the debts you want the Admin Order to cover to protect yourself from debt recovery action.

How long does it take to set up an Admin Order?

The process for setting up an Administration Order begins with you providing details of your finances. This information will include your income, expenditures and the amount you owe to each creditor. Once these details are submitted the Court will inform your creditors that your application. Your creditors then have 16 days to respond with any objections they may have. If there are no objections then the Order will go ahead.

How long do Administration Orders last and how will it affect my credit rating?

An Administration Order will go on until all the debts are paid off in full. They last for as long as it takes to repay what you owe which will depend on the size of your debt and how much the court has decided you'll pay back each month. 

Once you have paid off your debts you can apply for a Certificate of Satisfaction from the court. However, details of your Admin Order will be recorded on your credit file for six years. During this time you may find it more difficult to get credit, a loan or open a new bank account.

What happens if I can't afford or miss payments in an Administration Order?

If you do not make payments then the court can revoke the Order and your creditors will be able to take debt recovery action again. If your circumstances change and you are having difficulties making payments it is important that you let the court know - you can apply to have the payments changed.

Help with Administration Orders

To find out more about Administration Orders and other debt solutions call our helpline on 0800 028 4422. Alternatively complete the enquiry form and one of our impartial debt counsellors will call you back.