What is an administration order?

An administration order allows you to combine certain debts as one payment to the court. It's a county court order that mean's you will not have to deal with multiple creditors. Your payment gets divided up by the court on a pro-rata basis, and distributed to your creditors. Once you take out an administration order, your creditors are unable to take further action against you.

• Advantages of administration orders
• What are the costs of an administration order?
• How long will I have to be in an administration order?
• What if I can't keep up with payments?
• How long does an administration order stay on my credit record?
• Who can apply for an administration order?
• What happens after an administration order is completed?

Advantages of administration orders

1. Once your administration order is in place, your creditors should stop harassing you for payment - no more letters, phone calls or visits from debt collectors.
2. Your Administration Order will prevent creditors taking further action against you, such as declaring you bankrupt.
3. The interest and charges on your debts are frozen whilst under an administration order You'll only have to make one payment, cutting out the stress of and running around that goes along with trying to pay multiple creditors.
4. The court deals with the debt on your behalf

What are the costs of an administration order?

The court will charge you a handling fee of 10% of your total debt. The charge is 10 pence out of every pound you pay, for the duration on your administration order. However, the fee is not paid upfront. They will deduct the fee from your court payments when they divide your payment up to pay all the debtors included in your order.

How long will I have to be in an administration order?

Administration orders continue until your debts are paid off in full - providing you keep making your regular payments.

What if I can't keep up with payments?

If your situation changes or your payments are too high for you to keep up with you should ask the courts to reduce your payments. You can apply to get your payments reviewed, using an N244 form. On the form you will need to state your reasons for applying, and it may be a good idea to hand in a copy of your personal budget sheet too. A district judge will decide if a composition order is more suitable or if the payments need to be adjusted. If you fail to make payments without the permission of the court, your administration order may be cancelled or revoked. Should this happen, your creditors will be able to take further action against you and continue pursuing you for your debts. During an administration order, your creditors may also request the terms of your administration order to be reviewed, incase your situation changes and you are able to make higher payments.

How long does an administration order stay on my credit record?

Should your administration order be approved, it will stay on your credit record for six years from the start date of the order.

Who can apply for an administration order?

Your debt is eligible for an administration order if you have a minimum of two creditors, one or more high court or county court judgments (CCJ) against you, and your debt is under £5,000. If you would like to apply for an administration order, visit your local county court office to request Form N92.

What happens after an administration order is completed?

After an administration order is completed, your file will be updated to show your debts have been paid off at the Register of Judgments, Orders and Fines. Should you wish to have a "certificate of satisfaction", you can buy one for £15.