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Who is
an Administration Order suitable for?
An Administration Order may
be an appropriate solution for you if you
owe less than £5,000 in total and you
have received a County Court Judgement.
How does
an Administration Order work?
The first step in an Administration
Order is to make an application to the court.
(For information on how to do this, contact
your local CAB - www.nacab.org.uk
has contact details for all bureaux.) You
will need to show that you are unable to pay
your debts and that you have a County Court
Judgement against you.
The court will make an order
based upon what you can afford. It will state
the amount you are to pay each month and the
period that the arrangement will last. Often
the court states that you must make the payments
until your debts are cleared in full although
you may only pay back a percentage. The order
may also state that the amount you repay each
month is reviewed from time to time.
Monthly payments are made to
the court and then distributed to your creditors.
Advantages
of an Administration Order:
 You
only have to make one monthly payment.
The
payment you make is based on what you can
afford.
Once
the order is in place your creditors cannot
take any action against you.
Disadvantages
of an Administration Order:
The
court charges you for this service - the fee
may be anything up to 10% of your total debt
and is taken before payments to your creditors
are made.
If
you miss a payment the arrangement may fail.
You
can only apply for an order if you owe less
than £5,000 and have a County Court
Judgement.
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