What is an Administration Order?

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:

• How much you’ll have to repay (e.g. all of your debt or just part of it)
• How much your monthly repayments will be
• How long the Administration Order arrangement will last

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:

• You owe less than £5,000 (including interest and charges)
• Your debts are to at least two different creditors
• You can prove that you will be able to make regular repayments (to do this, you must give details of your income)
• You must have a County Court or High Court judgement against you that you cannot pay in full

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).