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Administration Order Pros and Cons

If you have a court judgement against you that you are struggling to pay, and debts under £5000, you may want to consider applying for an Administration Order. With an Administration Order, you make one affordable monthly payment which is distributed among your creditors by the Court. In order to help you decide if an Administration Order is right for you, here are some pros and cons. Advantages

  1. Your affordable monthly payment is considerably more convenient than making several payments to several different creditors. The payment is also based on your real income and expenditure. This means that it becomes easier to budget and manage your finances
  2. As the Administration order is a formal, legal debt solution, your creditors will no longer be able to contact you. This can hugely reduce the stress associated with debt problems.
  3. It is not expected that you will need to move, or sell your home, in order to satisfy your debts with an Administration Order. However, this might be different if you have rent or mortgage arrears as, while the Court will not pursue your home, your mortgage provider or landlord may make moves to evict you if they are concerned that you will not be able to pay.


  1. Administration Orders are limited to a very specific group of people. Those who have multiple creditors, less than £5000, and have at least one court judgment against them which they are struggling to pay. This means that, even if you think it sounds like a good option for you, you might not be able to consider it.
  2. As the court is the manager of this debt solution, there can be severe consequences if you don’t keep up with repayments. You might get an ‘attachment of earnings order’, which means that your repayments are taken directly from your wages.
  3. It will become even more difficult for you to take out further credit as the Order will be added to the Register of Judgements, Orders and Fines, which credit file agencies often search. This, however, will not be the first time you have been included on the Register of Judgements, Orders and Fines as in order to qualify for the Administration Order, you must already have at least one court judgement against you.
  4. The Court requires a fee to manage your Administration Order. This cannot exceed 10% of your debt level and is included within your monthly repayments. While this means that your ability to manage your finances will not be affect, it is likely that this will extend the length of time that you need to pay your Administration Order. If paying your entire debt and a 10% court fee will take a particularly long time, you might want to consider a Composition Order.

To learn more about Administration orders, click here.

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