An administration order is a legal agreement between you and your creditors concerning your repayment plan. This is made and arranged by the County Court. If you are looking for ways to help you deal with your debts, administration orders are available for individuals residing in England, Wales, and Northern Ireland. Unfortunately, if you are in Scotland, administration orders are not available.
There are certain requirements or qualifications for you to apply for an administration order:
- total debt should not be more than £5,000
- you should at least get one court judgment or an unpaid county court judgment (CCJ). This can include traffic penalties registered for enforcement in the Traffic Enforcement Centre at Northampton County Court.
- should have two or more debts
Since an administration order serves as a legal debt solution approved by both your creditors and the court, you are obliged to follow its stipulations.
Now, if you want an administration order but you don’t have a court judgment, you might need to wait for your creditors to consider court judgment against you. After the judgment is catered, you can then apply for an administration order.
Moreover, Once an administration order is approved, the creditors involved in the order can no longer harass you in collecting payments and imposing additional interest charges on your debts.
Administration order had been widely used in the past but is now uncommon. Since most people find administration order expensive, qualified individuals prefer debt relief order as much cheaper and suitable solution.
How to apply?
Fill in form N92 or the AO application form and submit it to your local County Court.
How much is the cost?
There’s no fee upfront, but to cover the costs, the court takes 10% of your payment each month.
How do repayments work?
Your financial situation will be assessed by the court to see how much you should pay every month. The court will distribute your payment to your creditors.
The court can take direct payment from your wages to avoid missing it. However, if this may cause problems, the court has to know.
You can also apply for a composition order if you wish to put a time limit on your repayment duration. This is normally in three years. If you wish to write off your debt at the end of the time limit, you have to strictly follow the agreement. In Northern Ireland, you can apply for an administration order and a composition order at the same time.
In case there’s no composition payment set by the court, you will have to pay your entire debts along with your administration order in place.
The impact of administration order to my credit life
An administration order remains until you pay off your debt, and the court charges are paid. This happens in the absence of a composition order, which limits the duration of repayments.
As soon as an AO ends, you can request for a certificate of satisfaction from the court, which amounts to £15.
AOs are entered on the Register of Judgments, Orders and Fines and remains there for 6 years. Unluckily, this information will reflect on your credit file, making it hard for you t secure credit. The court can only change the record appearing on the register to stress out that the AO has been paid in full.
What to do if any circumstances arise during the administration order?
You can inform the court in the form of a letter requesting a change or cancellation of an administration order. Besides, a hearing might be in place to have this arranged.
Debts included in an administration order
In general, all debts can be included in an administration order. However, the judge might exclude some debts like those involving criminal fines or council tax debts. In this case, creditors can object and request the court to leave out these debts; The court in response will decide if it’s just to leave out these debts by conducting a hearing.
Is an administration order the solution to your debt problems?
Before jumping into conclusion, you might need to consult your financial experts to get debt advice online now.
We help thousands of people each month. Our finance experts can determine if an AO suits you best in dealing with your debts.
We can answer all your question and give you the best advice to help you lower your monthly payments, write off unaffordable debts, or even stop pressure from creditors.
So, if you wish for free debt advice, apply online or call us from either mobile or landlines to get the chance to talk to our finance experts.