How much does an administration order cost?


If you want to avoid creditors taking further action against you and clear your County Court Judgment (CCJ) debts, then you may be considering applying for an 
administration order.

This allows you to repay your debts in a manageable monthly amount, minimising worry and offering you a way of comfortably removing what you owe. However, it’s important you understand how much an administration order costs and to factor this in when considering if you should apply for one.

Are there any fees associated with an administration order?

There are no fees to pay when you apply for an administration order – however, the court will take 10p from every £1 paid to them, which is to cover admin costs.

This means 10% is taken from every payment you make. It is taken every month and you must pay using cash, a cheque or postal order.

For example, if you are repaying a debt of £4,000 via an administration order the court will receive £400 and your creditors will receive £3,600. It does mean the length of time to clear the debt is a little longer.

It’s worth noting that if your proposed payments are only very small – meaning it will take years to pay your administration order off – the judge may consider assigning you a composition order instead. This will only take three years to complete, you will pay a comfortable monthly amount and you may not have to pay the full debt.

An example of this would again be that you owe £4,000 but can only afford £20 a month in repayments. This means you will pay £720, over three years. The court will still take a 10% administration fee which means it will receive £72 and your creditors will receive £648 over the three years.

If your administration order requires you to pay 12 or more court fees per year – while making repayments via your administration order – you can also use the HM Courts & Tribunals Service Fee Account service to pay any court fees. This can take away some of the hassle of getting cash out or having a postal order created every month.

To make things easier, you could also ask the court to apply for an attachment of earnings order – this means the 10% will be deducted from your wage before it reaches your bank account. It simply means you don’t need to worry about making the payment – but this can only be actioned if you have a job.

It’s worth noting you will also have to pay £15 to have a certificate of satisfaction sent to you once your debts are paid – to prove the administration order has been successfully completed.

This can be used if creditors chase you again for repayment at a later date and you want written proof you no longer owe them money.

Is an administration order a good solution?

An administration order can only be applied for by those who have a CCJ against them and used to tackle the debts listed within the CCJ. Other debt solutions, such as debt management plans (DMPs) and individual voluntary arrangements (IVAs) can be used to repay these debts – but are debt solutions you should not enter into without much consideration.

It’s best to look into all viable solutions first, but many people dealing with CCJs find an administration order is the best option. We have more information about them here.

If you need any help regarding administration orders, contact the PayPlan team on 0800 280 2816or via our contact us page.