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17.04.2018

Administration Order Eligibility

There are many different debt solutions, and they all have different criteria for eligibility. For example, an Individual Voluntary Arrangement (IVA) requires you to have £6,000 of debt, at least two debtors, have a steady income, and be resident in England or Wales. The different criteria can help you to decide which solution is the best solution for you.

An Administration Order is a court order for you to pay all your debts in affordable monthly instalments to the court, who distribute this among your creditors. To be eligible for an Administration Order, you need:

  • To have a court judgement that you are struggling to pay. Either from the County Court or the High Court
  • To have a total debt less than £5,000
  • To have debts to at least two different creditors
  • To prove that you are able to afford regular monthly payments

These criteria are also necessary for a Composition Order, which allows a judge to put a time limit on your repayments. Any unpaid debts are then written off.

The most important criteria are the court judgement and the limit on the amount of debt. This means that many people who are in debt are not eligible for an Administration Order. There are many similar debt solutions, however, that could be more suitable. Many could even help to stop creditors taking action that could result in court judgements or orders.

The IVA, as already mentioned, does not require you to have a court judgement, but does require you to have over £6,000 total debt. With an IVA, you pay one, affordable monthly payment to your IVA provider who distributes it among your creditors. Your creditors can no longer contact you, and your remaining debts are written off after 5 or 6 years. A similar solution, called a Trust Deed, is available for residents of Scotland.

 

Write off debts you cant afford
Find out if you're eligible

Please select the total sum of your debt

Less than £6,000
£6,000 - £20,000
More than £20,000

How many creditors do you have?

less than 2
2 or more

What kind of debts do you have?

Credit Card
Store Card
PayDay Loan
Catalogue
Personal Loan
Overdraft
Gas/Electric/Water Arrears
Income Tax / National Insurance
Tax Credit/Benefit Overpayment

What type of property do you live in?

Owned
Rented
Private Rented
Living With Parents

Where do you live?

Scotland
England
Wales
Northern Ireland

At Creditfix we will only use your personal information to conduct your debt help application. You will be called by a member of the Creditfix team who will give you information on insolvency solutions. Creditfix will also send you an email and SMS to pass on a welcome pack.

If you consent to us contacting you for this purpose, please tick here