Options for dealing with your debts
Administration orders
An administration order is a way to deal with debt if you have a county court or High Court judgment against you and you cannot pay in full.
The debt must be less than £5,000.
You make one payment a month to your local court. The court will divide this money between your creditors.
Creditors listed on the administration order cannot take any further action against you without the court’s permission.
MoneyHelper has information about where to get free debt advice.
Get an administration order
Fill in an application for an administration order (form N92) and return it to your local court.
The court decides:
- how much of your debt you have to repay, for example all or just part of it
- how much your monthly repayments will be
- how long the arrangement lasts
The arrangement is known as a ‘composition order’ if you cannot pay all your debts.
Costs
There’s a court fee each time you make a payment. This cannot be more than 10% of your debt.
Example
If you owe £5,000 the total fee cannot be more than £500.
Eligibility
You must:
- owe less than £5,000, including any interest and charges
- owe money to at least 2 creditors
- prove you can afford regular repayments, for example by giving details of your income
- have a county court or High Court judgment against you, which you cannot pay in full
Your responsibilities
You must keep up your repayments or the court can:
- ask your employer to take money from your wages – known as an ‘attachment of earnings order’
- cancel the arrangement
You may still be able to keep your business running, if you have one.
Public records
Your administration order is added to the Register of Judgments, Orders and Fines.
It’s usually removed 6 years after the date the order was made.
Your entry is marked as ‘satisfied’ if you repay your debts in full.
You can also ask the court for a ‘certificate of satisfaction’. To do this, write to the court and send a cheque for £18 (made payable to His Majesty’s Courts and Tribunal Service).