Administration Orders
An Administration Order is a Court Order that allows you to make a single payment every month to the Court.
The Court will then divide the money amongst your creditors, deducting a 10% administration fee for this service.
Once an Administration Order is placed, the creditors mentioned in the Order cannot take debt recovery action against you without the Court's permission.
Who Can Apply?
You can get an Administration Order if:
You have at least two separate debts (i.e. 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.
(You may have heard that this limit is going to increase.
Unfortunately, it isn't likely that this is going to happen in the near future).
To apply you will need complete a N92 form that you can get from the Court. Be sure to mention all the debts you want the Order to cover to protect yourself from debt recovery action.
How Long Does An Administration Order Last?
An Administration Order will go on until all the debts are paid off in full. Once you have paid off your debts you can apply for a Certificate of Satisfaction from the Court. However, details of your Administration Order will be recorded on your credit reference files for six years.
Making Payments
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.
