What happens if an Administration Order is revoked?
An Administration Order is one way that people get debt help when they need it. People who are struggling with a court judgement against them, either from the County Court, or the High Court, can apply to have their debts managed by their local court. This would mean that they have only one payment to make every month, which can make their finances considerably easier to manage. But, what happens if you struggle to even meet that one payment?
Struggling to pay
Financial circumstances often change. You may experience a financial emergency, such as an unexpected bill, or you might experience a drop of income. If this happens and you find that you can no longer meet your Administration Order payments, the most important thing to do is keep the court informed. It can be possible to lower your monthly payments, but your situation must be formally reviewed. If you simply stop paying, the court is more likely to take negative action against you, such as revoking your Administration Order.
If you miss payments, or are often late with your payments, then the court is likely to take action. You might receive a ‘Notice of Intention’. This notifies you of an impeding review, or their intention to revoke your order. You must respond to the court within 14 days or your order will be revoked.
When your situation is reviewed, the court might:
- Change your order into a Composition Order. This puts a time limit on your payments, with any remaining debt after this period being written off
- Change the terms of your order, such as reducing the amount of your payment
- Suspend your order for a few months to allow you time to financially recover
- Set up an Attachment of Earnings. This means payments come directly from your wages
- Revoke your Administration Order
A Revoked Administration Order
Having your Administration Order revoked means it is cancelled. This means that your creditors can contact you once more and are likely to ask for your full debt to be repaid. They could add backdated interest or take legal action against you. This is also the case even if you had a Composition Order.
Under these circumstances, it is recommended that you contact your creditors yourself to arrange repayment.