What should I do next?
Before you make a decision about your finances, make sure you’re fully informed about your options. Take a look at these resources:
An Administration Order is a way of managing your debt if you have a County Court or High Court judgement against you and you can’t pay in full.
If you cannot pay a debt that a County Court or High Court judgement orders you to, an Administration Order might help you.
It is a legally binding administrative arrangement, issued by a County Court that allows you to pay only what you’re able each month.
You will make one payment a month to the local court and they’ll divide it among your creditors. The debt must be less than £5,000 for an Administration Order to be a viable option.
Creditors listed on the Administration Order cannot take further action against you without the court’s permission.
Visit the Money Advice Service’s website to see if an Administration Order is the right option for you.
Fill in an application for an administration order (N92) and return it to your local court.
They will then decide:
The arrangement is known as a ‘composition order’ if you can’t pay all of your debts.
You must keep up your repayments or the court can ask your employer to take money from your wages (this is an ‘attachment of earnings order’), or they can cancel the arrangement.
You may be able to keep your business running if you have an Administration Order.
Every time you make payment, there will be a court fee. However, this cannot be ore than 10% of your debt.
Example: For a debt of £5,000 the total fee cannot be more than £500
You must match these criteria to be eligible for an Administration Order:
If you have an Administration Order, a record of it will be added to the Register of Judgments, Orders and fines. It’s usually removed six years after the date the order was made.
Your entry will be marked as ‘satisfied’ if you repay the debt in full. You can also ask them for a ‘certificate of satisfaction’. To do this, write to the court and send a cheque for £15 (made payable to Her Majesty’s Courts and Tribunal Service).