What is an Administration Order?

If you owe under £5000 and have at least one County or High Court Judgment against you you can ask the court for an Administration Order. If granted this will group your debts together freeze interest and stop creditors from taking action against you.
Please note: if you own a home or other significant assets which could help you pay off your debt you will not be eligible for an Administration Order.
Youll make just one affordable monthly payment to the court which will distribute it among your creditors. In general this will include all non-priority debts but wont affect priority debts unless the creditors agree.
If the judge doesnt think you will be able to repay your debt in a reasonable time he or she may grant a special kind of Administration Order called a Composition Order which means some of the debt will be written off at the end of the term normally 1-3 years. In most cases a judge will only grant a Composition Order when an Administration Order has been in place for 12 months.