An administration order is where the courts place an order to cover all of your outstanding debt. You will make a monthly payment to the court and the court will issue those payments on a pro-rata basis to each of your creditors.
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Whilst the order is in place, no creditor you owe money to who is included in the order will be allowed to take any action against you. Letters and debt collection procedures against you will be stopped also.
The court will take 10p out of every £1 as payment for their admin costs. This means the court will receive 10% payment of your total outstanding debt as handling fees, which will be deducted from your monthly payments.
Who can apply?
In order to be eligible to apply for an Administration Order you must have a county court judgment issued against you. You must owe monies to at least 2 creditors and your total debt must be LESS than £5k.
You apply by filling in form N92 that you can get from your local court office. If the order is accepted, you will continue making payments until the debts are paid off. If you have a change in your circumstances, your case may be reviewed and your payments.
Once your debt is paid off, you can obtain a “Certificate of Satisfaction” from the court. There is a fee of £15 for this certificate.
If you do not keep up with your repayments, the court can revoke the order and your creditors will pursue you for the full amount owed to them. If you feel you cannot afford to pay the amount requested of you, you can ask the court to reduce your payments.
If you owe more than £5000, there may be other options available. When you contact PayPlan we will go through these with you and make our recommendations.
For immediate and free debt advice please call PayPlan free on 0800 280 2816 or use our Debt Help Form to submit your debt problem online.