Administration Orders
So what is an Administration Order? Simply put, it's a single County Court order that compiles your debts and pools them together. The court will then require you to make a single payment each month, which is then distributed amongst your creditors. Taking out an Administration Order stops your creditors from taking further legal action against you for missed payments and accrued debt. An Administration Order lasts until all your debts are paid off; however, if you stop making regular payments, the judge may cancel or adjust the order. Similarly, if your circumstances change, you may wish to stop the Administration Order or pay off more each month.
Up to £5k of Debt
You can apply for an Administration Order providing that you have at least two debts and have at least one High Court or County Court Judgment (CCJ) against your name. Unfortunately, if your debts exceed £5,000 then you won't be eligible and would need to seek an alternative debt management solution.
Applying for an Administration Order
Applying for an Administration Order is a simple and relatively quick process. You will need to fill out an N92 form which is available from any local County Court office. The form requires you to list all your debts along with creditor's details and addresses. You will also be required to fill out your employment details and your current financial situation - similar to writing a personal budget. The N92 form also has space for you say what you can afford to pay a month, if you don't fill this box out then the court staff make that judgment on your behalf. Once you have sent the form back, the court will make a decision based on your personal circumstances, if they accept they will then inform your creditors that you have applied for Administration Order, in which they have 16 days to object.
Why Take Out an Administration Order?
An Administration Order gives you breathing space; effectively stopping creditors from being able to pursue you. Debt collectors, phone calls late at night, letters and personal visits will all stop once the order is in place. Another advantage of an Administration Order is that any interest or other penalty charges accrued from your debt are cancelled immediately saving you money and allowing you to focus on repaying the original sum. Not only does an Administration Order save you money, but time too, you only have one person to report too instead of a list of creditors, the court handles all correspondence and deals with the debt on your behalf.Related Articles:
Site is for information only and does not constitute financial advice. E&OE.
