Administration Orders

If you owe less than £5000, and you have received a County Court Judgment (CCJ), you may want to investigate taking out an administration order. This means that, for a small fee, you pay the court an amount that you can afford and in turn the court will distribute this amount to your creditors. As long as an administration order is in place, your creditors can take no further legal action against you.

If you decide this is what you want to do, your first step is to contact your local Citizens Advice Bureau. They will inform you how to apply to the court for an administration order. You will need to prove that you have been issued with a County Court Judgement and are unable to pay off your debts.

The court will establish what you are able to afford each month and over how long you will be paying off your debts. The amount will be paid to the court and they will distribute it to your creditors but debt must be paid off in full. The court may also requests that the amount you pay each month is reviewed regularly.

The Good and the Bad

Although the amount will be affordable to you and you will only have to make a single monthly payment, if you miss a single payment, the order is likely to become void. The court also usually takes 10% of the complete debt as a fee.

Creditors are usually unable to take action against you while an administration order is in place.