What is an Administration Order?
An Administration Order is one of the many possible debt solutions that could help you with your debt problems. If you have a court judgement against you that you are struggling to pay, then you can apply to your local county court to have an Administration Order that could organise your creditors into one monthly payment.
How does it work?
If your application is accepted, you pay the court one monthly payment, and they distribute it among your creditors. This makes your debts much more manageable, as one payment is much more convenient than a number of payments. Your creditors also cannot contact you without first gaining permission from the court. As most, if not all, of their correspondence will now be with the court, this can greatly reduce the stress and worries that come with being in debt.
Gaining an administration order is only possible for people who already have a court judgement against them. This could be a county court judgement or a High court judgement. If you are struggling to pay your debts, then you fill out an N92 form and return it to your local court. If they agree with your assessment that you are struggling to, or can’t, repay all your debts, they will decide a payment plan, including the amount of debt you have to repay, the amount of your monthly payments and the length of time you will make these monthly payments.
Your monthly payment includes a payment to the court, but these payments cannot add more than 10% in total to your debt. This means that a debt of £4,000 can’t result in court fees that total more than £400.
Administrations are added to the ‘Register of Judgements, Orders and Fines’ for six years, but after your debts are paid off it is marked as ‘satisfied’. If you would like proof that your debts are satisfied, you can pay the court £15 for a ‘certificate of satisfaction’.
What can be included?
All of your debts are going to be added to the order. This includes:
- Mortgage arrears
- Rent arrears
- Credit Card debts
- Pay Day loans
- Store Card debts
It is possible to ask to have your mortgage and rent arrear left out from the order if you are concerned that your landlord or mortgage lender may repossess your home. This is often a good idea if you are attempting to get a ‘composition order’ which puts a limit on the length of time that you make the payments.