An Administration Order is a way to deal with debt if you owe less than £5000 and already have a County Court judgment (CCJ) against you which you cannot afford to pay in full.
It is a formal, legal debt solution which means it is approved by the court and your creditors have to stick to it once it is in place.
You need to have a regular income with some spare income which can be used to make a single payment towards your debts each month (paid to your local court). The court will divide this money between your creditors.
Technically speaking an Administration Order will last until the debts are cleared and the court fees paid. However the Court can order that you only pay a proportion of your debts where you cannot pay off all your debts within a ‘reasonable time’.
The Court Guidance suggests that a reasonable time will usually be three years. After this time the Order will end and the any debt included in the Order which remains unpaid will be written off.
If you would like help or advice about an Administration Order please give us a call on 0800 088 7376 or complete the form below to speak to one of our experts
As well as the information found on this website the Government’s Insolvency Service has produced a useful guide to personal debt solutions which you might also find useful: “In Debt – Dealing with your creditors”.
The Money Advice Service (MAS) are an independent service set up by the Government to provide people with free advice about all aspects of personal finances. For help from MAS if you are struggling with debt please follow this link: MAS – Help if you are struggling with debt.
It is also recommended that you read this one page document produced by MAS entitled “Dealing with debt – 5 things you should know”.
A Debt Relief Order is not the only debt solution which might be suitable to resolve your debt problem. Before making your final decision to apply for a DRO you should also consider the other available debt solution options. For more information please see: Personal Debt Solutions
WTFS can advise you about whether an Administration Order is the right debt solution for you. However we do not provide an in house service to help you implement this debt solution. If you decide to apply we will be happy to explain what you need to do. Alternatively we suggest that you contact the Step Change debt Charity who will be able to help you.