If you have a county court judgment (CCJ) or High Court judgment made against you, and you are unable to pay any debt in full, an administration order can be a way to deal with debts that are less than £5,000. You must also have more than two companies that you owe the money to. Basically the administration order will allow you to make one monthly payment to the court, and this will then be divided amongst your creditors.
All companies that are named on an administration order will not be able to take any further action against you without permission from the court.
To apply for an administration order you will need to complete an application form known as an N92, this is available from your county court. They will then decide how much of your debt you need to repay and how much your payments will be. They will also dictate how long the order will run for. There is a court fee associated with an administration order and this will be paid each time a payment is processed. This fee can not be more than 10% of the total value of the debt.
There will be a public record of your administration order as it will be added to the Register of Judgments, Orders and Fines. This will be removed 6 years after the date the order was made.
As with most repayment plans it is essential that you keep making payments as dictated by the court. If you default on the order and miss payments the court can revoke the order, and your creditors will be able to chase you for the full amount owed to them.
If you owe more than £5000 there are other debt solutions available to you. Contact Creditfix to speak with one of our advisers and see what the best debt solutions are for you and your situation.
Call us now for immediate and confidential free debt advice on 0808 208 5198 or complete the form. We can start to work through our debt problems as soon as you contact us.