In a nutshell, An administrative order is a legal debt settlement agreement that sets out a repayment plan. This form of debt solution will consider the income you have remaining after your essential bills and living expenses have been accounted for.
What debt problems are administrative order suitable for?
This may be the best debt help if you have:
- two or more debts
- less than £5,000 in total debt
- have at least one County Court judgment
Administrative orders are also only available to those in England, Wales and Northern Ireland.
Our debt expert’s opinion on the pros and cons…
Advantages of administrative order debt solution
- Once agreed, your creditors won’t be able to chase you for any additional payments outside of the debt settlement schedule, nor will they be able to add any further interest or charges.
Disadvantages of administrative order debt solution
- In the past, administrative orders served as an incredibly common form of debt assistance. However today they are used less and less. In their place are debt relief orders – which are a more affordable and often more appropriate form of debt settlement schemes.
Worried about debts that won't go away?
FAQs – Administrative Order
How do the repayments of an Administration Order work?
The court will decide how much you’re able to afford to repay each month. You’ll then pay the court moving forward, with this payment sent on to your creditors.
How long will the Administration Order last for?
Your Administration Order will last until you have repaid your debts in full, however, it’s typically accepted that the repayment terms should not exceed a duration of three years.
What is a Composition Order and is it better than an Administration Order?
A Composition Order is not an alternative to an Administration Order. Instead, a Composition Order comes into effect after the three years of the Administration Order if all repayments have been made and the original debts haven’t been cleared. In this case, the Composition Order can allow for the debts to be written-off.
How long will I have to wait for a decision?
Once you’ve applied and your creditors have been notified of your proposed repayments, they have 14 days to object to your terms. If none of your creditor’s objects, then the Administration Order will be cemented with a ‘Final Order’ being created. If your creditors do object, there will be a court hearing, during which the objection(s) will be heard.
How do I apply for an Administration Order?
Fill in the Administration Order application form (form N92) and visit your local county court.
Download form N92
What happens if my circumstances change for the worse at some point during the Administration Order?
If your situation changes and you find that you’re struggling to keep up with your repayments, you should contact the court. In some instances, they’ll reduce the payment terms, although this is at their discretion.
How much does an Administration Order cost and is there an upfront-fee?
There are no initial fees to pay, however, the county court retains 10% of the monthly payment to cover administrative costs.
What happens once the Administration Order comes to a close?
Administration Orders are recorded on the Register of Judgments, Orders and Fines, where they remain for six years. The Administration Order will also show on your credit file and will impact your ability to apply for new credit for a minimum of six years.
Will I need to apply for a new bank account?
In all likelihood, you will need a new bank account in the form of a basic bank account with no credit facilities. However, applying isn’t a difficult process – all high street banks provide this type of account.