County court administration Order

Court

You can ask the court to make an administration order if:

  • You owe no more than £5,000 to at least 2 creditors;
  • You have a court judgment entered against you by one of your creditors that you can’t pay in full.

Under the order you must make weekly, monthly, or quarterly payments from your income to the court. They are then shared amongst your creditors, in proportion of the amount you owe them.

If you don’t keep up with the payments, the court may make an attachment of earnings order. This is sent to your employer, directing them to deduct amounts from your wages and pay them to court for sharing amongst your creditors.

 

Pros

Cons

None of the creditors listed on the administration order application can take further action against you with the court’s permission. Creditors can put objections to the court and ask to be left out of the order. The court need not agree to this.
The court deals with the creditors and shares out the payments for you. If you don’t keep up payments, the order may be revoked (withdrawn) and the creditors can pursue you again.
There is no upfront fee the court takes 10p in every £1 you repay. If the court makes an attachment of earnings order, your employer will find out about your money troubles.
You can apply to make payments for a limited time, such as 3 years, using a composition order.
If your circumstances worsen, you can apply to the court to make reduced payments.
You may be able to continue running any business you have.