Administration Order
Administration order.
An Administration Order is a formal debt management solution supervised by the court. It consolidates multiple eligible debts into a single monthly payment, which is distributed among creditors. This solution is suitable for individuals with unmanageable debts who have at least one county court judgment (CCJ) and a regular income.
Once approved, the Administration Order provides legal protection against creditor actions and allows you to focus on repaying your debts through the court-approved plan. It typically lasts until all included debts are repaid, offering a fresh start towards financial stability. Seeking advice from a reputable debt management company or regulated debt advisor is crucial to determine if an Administration Order is the right solution for your circumstances.
Administration orders are only available in England, Wales and Northern Ireland. If you live in Scotland there are other options available to help you deal with your debts. An administration order is legally binding on your creditors and gives you protection from them. The creditors included in the order can’t contact you for payment or add any more interest or charges to your debts once the administration order has been approved.
To apply for an administration order you need to have:
- less than £5,000 debt in total
- received at least one court judgment
Pros
There is no upfront cost to you.
You make just one monthly payment into court.
Your home is not at risk.
Cons
The debt must be below £5,000.
You may have to sell valuable possessions.
Your details are recorded on a Public Register.
Your credit rating will be adversely effected.
The order will be listed on a public insolvency register.