Administration orders
If one or more of your creditors has obtained a court judgment against you, the county court may make an administration order. Administration is a court-based procedure whereby you make regular payments to the court to pay towards what you owe your creditors. Your total debts must not be more than £5,000 and you will need enough regular income to make weekly or monthly repayments. You do not have to pay a fee for an administration order but the court will take a small percentage from the money you pay towards its costs.
Advantages
- Reasonably quick to set up
- Stops creditor harrassment
- You only pay what you can afford
Disadvantages
- Debt must be £5000 or under in total
- Payments must be made-variations can be granted by the court
- At least one creditor must have applied for a CCJ (County Court Judgement)
If you do not pay regularly, the order could be cancelled and you may become subject to the same restrictions as someone who is bankrupt. If your circumstances change and you cannot pay as ordered, you can apply to the court to change the order. The court which made the order will tell you what to do. Details of administration orders are available at your local county court. To find your local county court-click here
