An administration order is a formal court order preventing further action from creditors whilst you make a single monthly payment to the court. The court staff divide your payment amongst your creditors on a pro-rata basis.
The court may grant an Administration Order providing you have at least two debts. At least one of your debts must be a County Court or High Court judgment against you. Finally your total indebtedness must be less than £5,000.
Administration & Composition Orders
Once an Administration Order has been given the court will deal with your debts on your behalf, and interest and other charges that were accruing are stopped.
Changes in circumstances
If you have a change of circumstances that means you have less money available or feel the court has set the payments too high, you can make an application to change the amount you pay using form N244 (available from the County Court). You should not pay a fee for making this application, as costs to cover fees are treated as already being covered by the ongoing deductions in your administration order. You will usually have to attend a hearing with the district judge, who can change the terms of the Administration Order or Composition Order. It is important to apply for a variation if you are struggling because the court can cancel or your order if you do not keep up with the payments.
If you need assistance in completing the Administration or Composition Order and advice about your local court practices, you should contact your nearest local advice agency.