What is an administration order?
An administration order is a legally binding agreement with your creditors to pay back your debts over an agreed period. Creditors will stop any other action to collect your debts while you make payments to the court.
Find out when an administration order might be used, which debts can be included, how to apply for one and any issues that might arise with an administration order.
Can I get an administration order?
To be eligible for an administration order, you need to have:
- two or more debts
- less than £5,000 of debt in total
- an unpaid county court judgment (CCJ) or high court judgment
Administration orders aren’t used that often anymore as a debt relief order is usually a cheaper and more suitable option.
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What happens when I apply for an administration order?
A county court judge will decide whether to grant an administration order.
You might also be asked to go to a court hearing.
If there are no objections from your creditors and the judge is happy with how much you can pay, the administration order will be made.
Administration orders shouldn’t be refused without a hearing.
Repayments
Your monthly repayment will be based on what you have left after covering essentials and any priority debts.
With an administration order, your debts are combined.
You make one regular payment to the court each month and that money is split between your creditors.
Your creditors can’t get in touch without the court’s permission or add any extra charges or interest to your debt.
Deductions from your wage
The court might take your payments directly from your wages.
If this is a problem, tell the court.
How do I apply for an administration order?
The application process is different depending on where you live in the UK.
If you live in England and Wales, you apply by filling in an N92 form and taking it to your local county court. You sign the last part of the form in front of a court officer.
If you live in Northern Ireland, ask the Enforcement of Judgments Office for form 11. Fill this in and return it. You might be asked to attend a hearing where a judge will decide whether to grant an administration order and how much your repayments will be.
How much does an administration order cost?
There’s no upfront fee to pay but the court takes 10% of each repayment you make.
What debts are included in an administration order?
When you apply for an administration order, you must list all your debts.
Your creditors can have 16 days to raise any objections.
They may dispute the amount you’re offering, the amount you say you owe or ask to be left out of the administration order altogether.
It’s up to the judge to decide if any debts are left out, such as priority debts.
Any debts left out of an administration order still count towards the £5,000 limit.
What if I have a joint debt?
You can’t get a joint administration order with the person who shares your debt, although you both can apply for separate administration orders.
If you include a joint debt in an administration order and the other person hasn’t applied for one, they might still be chased by the creditor.
Mention on your application form if you borrowed the money with someone else. Include their name and address.
If you have a joint debt, put down the full amount. With joint debts, each borrower is liable for the full amount, not just their share (this is known as joint and several liability).
What if I have more than £5,000 in debt?
If you owe more than £5,000, you can try speaking to your creditors to see if they’ll write off some of the debt to bring it within the administration order limit.
A creditor might agree to this if they think they’ll get more money back.
You might be able to get a grant to pay off some of the more important debts and bring you within the administration order limit.
What if I’m trying to make arrangements for some of my debts already?
If you’re trying to reach a separate arrangement with your priority creditors, mention this when you fill in your application.
If you’re asked to attend a hearing, take copies of any letters from your creditors as evidence.
What happens if my circumstances change?
If your circumstances change, you can write to the court and ask for your repayments to be altered or you can ask for the administration order to be cancelled.
You might need to go to a hearing.
What happens if I don’t make the administration order repayments?
If you don’t keep up with the repayments, the court might cancel your administration order.
If the court revokes your administration order, your creditors can resume chasing you for each debt in full.
What’s a composition order?
If you can’t pay your debts in full within a reasonable timeframe, the court might agree to a composition order.
This allows you to pay back part of what you owe and get the rest written off.
You can apply for a composition order at the same time as applying or when an administration order is in place.
You need to work out how much you can afford to pay each month. This will be compared against what you owe.
For every pound that you owe, you’ll pay a percentage of this off your debt.
What happens at the end of an administration order?
When your administration order has finished, you can ask the court for a certificate of satisfaction.
This costs £14 and proves you have paid off your administration order.
Will an administration order show on my credit file?
An administration order will show on your credit file and the public Register of Judgments, Orders and Fines for six years from its start date.
It’ll be harder for you to take out credit with an administration order on your credit file.
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