Administrative Order
If your debt is less than £5,000, you can apply for a court order that covers your debts. You make a monthly payment to the court and they distribute the money amongst your creditors.
Who it’s for
People who have had a County Court Judgment (CCJ) against them and have a number of small debts that are less than £5,000 in total.
How it works
If your Administrative Order (AO) is successful, you make regular payments to the court at a rate you can afford. The court distributes your money to your creditors and takes 10% of your payment as an administration fee.
If creditors don’t want to be included in the AO, the court may set a hearing to listen to their objections. The court will decide if they should be included.
You can also request a Composition Order, which limits your payment period. After a fixed period, which is normally three years, your debt is written off.
Advantages of an Administrative Order
- While the Administrative Order (AO) is in place, no creditor included in it can take action against you, without the leave of the court
- Your creditors cannot pursue you for money
Disadvantages of an Administrative Order
- If you fail to make your payments the order may be cancelled and you will be subject to the same restrictions as someone who is bankrupt
- Your credit raying will be affected. When you apply for an AO, you will be issued with a County Court Judgment first, which affects your credit rating
How to proceed
The County Court may make an Administrative Order (AO) if you have a judgment against you. Or you can apply for an AO yourself. You need to get an N92 form from your local court.
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