A county court administration order admin
A county court administration order
What is a county court administration order?
A county court administration order is a county court order which prevents individual creditors taking enforcement action without permission from the court and which requires that all your debts be dealt with together.
You can ask the court to make the administration order if you owe less than Ā£5,000 to at least two creditors and you have a county court or High Court judgment against you and you can pay it in full. You make one payment a week or a month to your local county court, which shares the moneys between your creditors, in proportion to the amounts you owe them. If you don keep up your payments, the order can be revoked and the creditors can start their debt recovery action again.
Once issued by the court the administration order will be legally binding on the creditors listed in the application. The creditors will have to accept the terms of the order.
The court will deal with the creditors and payments.
Interest and charges are frozen.
You can apply to the court for a composition orderĀ which limits the time you need to make payments to, usually, 3 years.
You can apply to the court to make reduced payments if your financial situation gets worse.
You may continue running a business.
Creditors can object to listing in the order. They need to have very good, exceptional grounds.
If you dont keep up your payments, the order can be cancelled and the creditors can chase you again.
If you dont keep up your payments, the court may make an attachment of earnings order. In that case your employer will be informed.
The court takes 10p of every Ā£1 you repay.
How we can help
We can provide general information and advice on county court administration orders. If you need assistance with an application to the court please contact StepChange Debt Charity or Citizens Advice Bureau where you will be able to get help free of charge.
The Insolvency Service booklet In debt? Dealing with your creditors.
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