An administration order is a single court order that covers a number of debts. You make a single payment every month and the court will divide the money between all your creditors.
You can only apply for an administration order if:
- You have at least two debts
- You have at least one CCJ or another debt registered in court for enforcement, such as a Costs Order or a traffic penalty
- Your total debts are less than £5,000
How to apply
To apply you need an N92 form which comes with notes to help you complete it. There is no up-front fee to pay but 10% of your payments goes towards the cost of the order rather than your creditors. Jointly owned debts must be included but couples cannot apply together and have to make individual applications
- No need to deal with your creditors. Letters, emails, texts and phone calls will stop.
- Creditors cannot take legal action against you.
- Making a single payment every month.
- All interest and charges stopped.
- Some debts that cannot included in bankruptcy, such as court fines, social fund loans and benefit overpayments, can be included
- Once the order is completed, any outstanding balance is no longer payable.
Some orders may be decided without a hearing by court officers, unless the amount you are able to offer is too small to repay the debts in a reasonable time. A judge can decide to propose a longer period to repay or make a composition order. A hearing may or may not be required. If a judge refuses the application or a creditor objects to the proposed terms, a hearing will take place. You can also object to the terms proposed if they are different from your original offer, you will have 14 days to send your objections to the court.
If you are on a low income and can only afford very small or nominal monthly payments, you can apply for a composition order. If a judge agrees to make a composition order, you will only have to pay part of your debts, usually an amount that you could manage to pay over a three-year period.
Administration orders can be reviewed on request either by yourself (for example, if you can no longer afford the installments) or by a creditor. An order may contain a provision for periodic reviews or the court could request a review of its own accord. A hearing will be arranged and a new order will be made.
An attachment of earnings can be made to repay an administration order.