What is an Administration Order?
An Administration Order is a way in which people who have low levels of debt, and are struggling to maintain payments, can set up a plan whereby they have some security from their creditors. This blog will explore Administrations Orders and will explain exactly what they are.
An Administration Order is applied by a court and it covers all of your outstanding debt. Similar to plans like a Debt Management Plan or an Individual Voluntary Arrangement, you will make one single monthly payments to the court who will then distribute this to all of your unsecured creditors.
Once the court has granted an Administration Order your unsecured creditors will not be able to pursue any further legal action against you. Your creditors are also not allowed to send letters or instruct debt collecting procedures to chase you for the debt.
In order to apply for an Administration Order you must fit strict criteria. You must have at least two creditors and owe less than £5,000 to your unsecured creditors. You must also have a County Court Judgment against you by a least one of your creditors.
In order to apply for an Administration Order you must visit your local court and obtain a N92 form. Once this has been filled out and submitted, the court will decide whether to grant the order or not. If the court does grant the order they will distribute payments to your creditors until your debts have been cleared in full.
The court will keep 10% of your monthly payment for administration costs and will also charge £10 for you to receive your Certificate of Satisfaction.
If you would like to look into an Administration Order you should visit your local Citizens Advice Bureau for more information.
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