Dealing With Debts, Options Explained

c) 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 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 judgement (CCJ) entered against them

Some pros

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
interest and charges are stopped
no up front fees
can apply to make payments for a limited time
if circumstances change / worsen, an application can be made to reduce payments

Some cons

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

Details of Administration Orders can be obtained from the County Court

Useful Contact

Her Majesty's Courts Service
0845 456 8770

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