An Administration Order is a formal, legally binding agreement made between you and your creditors that is approved by the court. You will make one affordable monthly payment to the court, who will then distribute this to your creditors. It will stop your creditors taking further action against you.
Am I eligible?
You’ll need to live in England, Wales or Northern Ireland to apply for an Administration Order. If you live in Scotland, take a look at other ways we can help you deal with your debt.
You can apply if:
- you have a
- or High Court judgment against you
- you have at least two debts which total less than £5,000 including any interest and charges
- you are in a position to afford monthly repayments
What are the advantages of an Administration Order?
Having an Administration Order in place can take the pressure off you, as you have a structured way to repay your debts without your creditors chasing you.
- None of your creditors can take action against you without getting permission from the court
- You won’t receive letters, phone calls or visits from your creditors once the Administration Order is in place
- Interest and charges are frozen
- The court deals with your debts on your behalf and distributes payment to your creditors on a pro rata basis
What does it cost?
You won’t need to pay a court fee to set up an Administration Order. However, the court will take a handling fee of ten pence out of every pound, which is 10% of your total debts.
How do I apply for an Administration Order?
If you live in England, Wales or Northern Ireland, you can apply by filling in form N92 that you can get from your local court office. This form will ask for your income and outgoings to work out how much you can afford. You will also need to include details of your unsecured debt, eg credit cards, loans, store cards.
Once you’ve completed the form (but not signed it), you’ll need to make an appointment to submit the form once court staff have checked it and witnessed your signature.
What happens next?
The court will contact all the creditors you’ve listed in your Administration Order application – they have 16 days to register any objections. After this time period, your Administration Order will begin. If you keep up payments in full and on time, your creditors cannot take any action against you.
How long will my Administration Order last?
Your Administration Order will last until you’ve repaid all the debts included in it – if you can only make small repayments, the District Judge may make a ‘Composition Order’ – this is a time limit for the Administration Order to end, which is usually three years. After this date, your creditors will write off any remaining debt.
What happens if I can’t afford to make payments?
Failing to keep up with your repayments means the court could revoke the Administration Order and your creditors will be able to pursue you so if you’re having difficulties, ask the court to change the amount you pay.
You can do this using N244form. It’s a good idea to include a copy of your budget to support your application. If you need help working this out, get in touch with us.
What happens when my Administration Order comes to an end?
Once your debt is paid off, you can obtain a “Certificate of Satisfaction” from the court. There is a fee of £14 for this. Details of your Administration Order will be on your credit reference file for six years from the date the order is made. It will also be added to the Register of Judgments, Orders & Fines. Usually this will be removed after six years.
Do I have other options?
If you owe more than £5000, other debt solutions may be more suitable for you such as Debt Relief Orders. Debt Management Plans, IVAs and Bankruptcy.
Why not contact our friendly team for advice and support about the best ways to deal with your debt? You can call us free on 0800 280 2816, get in touch via Live Chat or use our debt help form.