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Administration Order |
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An Administration Order may be an appropriate solution if you have received a County Court Judgement and owe in total less than £5,000, at least one County Court Judgement and more than one creditor. |
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You need to make an application to the court that you have a County Court Judgement against you and that you are in financial difficulties to pay your debts. Obviously proof of your difficulties will have to be provided. |
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An order will be made by the court showing the amount you have to pay each month. The period of the arrangement will last based upon your ability to pay. The order may state that your financial situation will be reviewed periodically. |
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Often the court states that you must make the payments until your debts are cleared in full although you may only pay back a percentage. |
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Once the Administration Order is in place, your creditors cannot take any action against you. You will have to make one affordable monthly payment to the court to distribute to your creditors. |
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Please note that you will be charged for the Administration Order. The fee is calculated based on the percentage of your total debt. It may be anything from 10% and paid to the court before payments are made to your creditors. To continue with the Administration order you will have to ensure that you do not miss out on your monthly payment. Once the payment is missed, the arrangement will be broken. |
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