Administration Orders

An Administration Order provides another solution to bankruptcy.   Below we discuss how this arrangement can benefit people in certain circumstances.

Benefits of an Administration Order

If one or more of your creditors has obtained a court judgment against you, the county court may make an administration order.

Administration is a court-based procedure whereby you make regular payments to the court to pay towards what you owe your creditors. Your total debts must not be more than £5,000 and you will need enough regular income to make weekly or monthly repayments.

You do not have to pay a fee for an administration order but the court will take a small percentage from the money you pay towards its costs. If you do not pay regularly, the order could be cancelled and you may become subject to the same restrictions as someone who is bankrupt.

If your circumstances change and you cannot pay as ordered, you can apply to the court to change the order. The court which made the order will tell you what to do. Details of administration orders are available at your local county court.
 

• If you want to consider this and require assistance in writing to your creditors, contact us now on 0845 890 2277 

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IVA process explained

Informal Arrangements