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How does an Administration Order work?

If you can afford to make regular payments towards your debts, you might be able to apply to the court to get an Administration Order. This is where you agree to make regular weekly or monthly payments from your income to the court. This can be for the full amount you owe or a percentage of it. The court shares this money out between your creditors (people you owe money to).

When you have an Administration Order you stop paying any interest or other charges. Also, your creditors can’t take any further action against you without permission from the court.

You can find out if an Administration Order is right for you by getting free and independent debt advice.

• Debt repayment options - a guide

• Debt - where to get free help and advice

Cost of an Administration Order

The court will charge you a fee every time you make a payment. The cost of this fee is no more than 10 per cent of your total debts. For example, if you owe £5,000 the total amount you have to pay the court is £500.

Conditions for an Administration Order

To get an Administration Order you must:

• owe less than £5,000, including any interest and charges
• owe money to at least two creditors
• prove you can afford regular repayments – for example, give details of your income and expenses
• have either a county court or High Court judgment against you, which you can’t pay in full

How to get an Administration Order

To get an Administration Order you must apply to the court. The court will:

• decide how much you can reasonably afford to repay each week or month
• confirm how long the Administration Order will last, usually until the amount confirmed by the court has been repaid
• decide if you are to repay your debts in full or only a percentage of them

If you can only afford to repay a percentage of your debts, the court will issue a Composition Order instead. This can only last for up to three years.

Your creditors can ask the court not to be included in the Administration Order or Composition Order.

Contact your local Citizens Advice Bureau or the National Debtline for free and independent advice on how to apply for an Administration Order.

• Find your local Citizens Advice Bureau

• Free debt advice and information from National Debtline Opens new window

• Find your nearest court

Your Administration Order responsibilities

You must keep up with the repayments or the court can:

• cancel your Administration Order – if cancelled, your creditors can take action against you to recover the money you owe
• issue an 'Attachment of Earnings Order' – this allows the court to tell your employer about your debts and take money directly from your wages

If you can’t keep up the repayments, you might be able have the Administration Order changed or a Composition Order issued. Get free and independent debt advice to find out what your options are if you can’t keep up the repayments.

• Debt - where to get free help and advice

How an Administration Order affects your credit rating

Administration Orders are listed on the publicly available Register of Judgments, Orders and Fines.

Credit reference agencies keep details of your Administration Order for six years. It will be harder for you to open new bank accounts, get loans or buy on credit if you have an Administration Order.

If you repaid your debts in full, you can ask the court to mark your entry in the Register of Judgments, Orders and Fines as 'satisfied'. You can’t get the register marked as satisfied if you had a Composition Order (because you didn’t repay your debts in full).

You can get an official record showing that the Administration Order has finished by asking the court for a 'certificate of satisfaction'. This costs £15.

• Find your nearest court

• The Register of Judgments, Orders and Fines - search the register online
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• Credit reference agencies Opens new window

More useful links

• Dealing with debt problems - a guide

• Debt - where to get free help and advice

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