Administration Orders
What is a Administration Order?
Administration Orders are designed to assist people who have debts of less than £5,000 owed to at least 2 different creditors, and who are unable to maintain their repayments.
An Administration Order can only be applied for in cases where a County Court Judgement or High Court Judgement has been made against the debtor.
When this is the case, the debtor can apply to the court for an Administration Order. When granted, the debtor makes a monthly payment to the court and in turn the court administers payment to all the individual creditors.
Once the Administration Order is in place, creditors lose the right to take enforcement action against the debtor, without the consent of the court.
Under the Administration Order all the individual creditors are treated with parity, each is given a pro-rata share of the debt's payment into the Order.
The only type of debt that cannot be included in an Administration Order are social fund loans and benefit overpayments, where the debtor is still in receipt of benefits from which a deduction can be made.
There is no cost for the application of an Administration Order, however, the court's costs will be added to the overall amount being repaid by the debtor. These are currently 10p for every Pound repaid through the Order.
Administration Orders can only be given to individuals, but joint and several debts must be included and the whole value of the outstanding debt must be included.
Once the debt has been successfully repaid through the Administration Order the court will provide a certificate of completion for a small fee.
If you have debts above £5,000 contact IVAorg as it may be possible to arrange a Debt Management Plan for you instead.
