Get Out Of Debt
  • Write off unaffordable debts
  • Lower your monthly payments
  • Stop creditors from contacting you
  • Check My Debt Options

How Can I Get Out of Debt?

With a simple legislated debt solution you can consolidate all your debts into one lower, affordable monthly repayment. Make one set payment per month for a set period, and after the period expires any remaining debts left are legally written off. This can be up to 90% depending on your circumstances.

Administration Order

What Is An Administration Order?

A repayment plan that is arranged by the County Court is what an administration order is.

And it is only in England, Northern Ireland and Wales that an administration order is available. To help you deal with your debts should you live in Scotland, there are other options that are available.

You need to have, if you are applying for an administration order:

  • To have received one court judgement at least
  • In total, less than £5,000 debt

An administration order gives you protection from your creditors, as it is legally binding on them. And once the administration order has been approved, the creditors can add no further interest to your charges and cannot contact you for payment.

Administration orders are rarely used these days, even though they were once very common. Those individuals that would qualify for one find that a debt relief order is a more appropriate debt solution and is also less expensive.

An administration order and how it works

You begin by filling in a N92 court form that will list your debts, expenses and income and which you will take to court.

You may then be asked to attend a hearing at which time a judge will make the decision whether or not to grant an administration order and just what payment will then be due. The court will make a decision without a hearing, if your case looks straightforward.

The payment you would then make to the administration order every month would come to the amount which is left to you after paying your living costs, essential bills and priority debts.

And should the administration order be agreed upon, instead of your paying your creditors directly, you will make one payment to the court.

If you are working in Wales or in England, using an attachment of earnings, the court may take the payment directly from your wages.

To set up an administration order, there is no court fee, but 10% of each payment that you make will be kept by the court.

You can apply for a ‘composition order’, if toward your debts you can only afford a small amount. This will set a date, often after three years, when the administration order will end. When this date is then reached, any remaining debt will be written off by your creditors. This will only be considered by the court if in a reasonable amount of time, your payment will not clear the debts.

Your administration order will continue until full payment of the debts is made, if the court does not set a composition order.

How will my credit file be affected by an administration order?

For six years from the date of the order, on your credit file an administration order will appear. In addition, on the public Register of Judgements, for six years it will also appear. You will find taking out any further credit to be very much more difficult during this time.

What happens if during the administration order my circumstances change?

You can write the court to cancel the administration order, or to alter the payment. To arrange this, you may have to go to a hearing.

In an administration order, what debts may I include?

In theory, in the order you may include all your debts. But there may be times when some debts may be left out by a Judge. In most instances this will occur with debts such as criminal fines or council tax arrears.

A creditor can petition the court to leave them out, should they object to being in the order. If this should occur, a hearing will be called by the court to make a decision whether or not it is fair for the debt to be left in the order.