An IVA may not be suitable in all circumstances.
Fees apply to the service, click here for more details. Your credit rating may be affected. Read more about IVAs here.
An Administration Order is a debt solution obtained through the courts. To apply, you’ll need to have a county court or high court judgement against you and be in a position where you cannot afford to pay the debt. We’ve detailed just about everything you may need to need about this option below.
An Administration Order is a legally binding arrangement between you and your creditors to resolve your debts over time.
To obtain one of these, a creditor must first take legal action against you through either a high court or county court judgment. If you cannot pay the ruling in full, you could apply for an Administration Order to resolve the debt providing:
If the courts decide that you cannot pay your creditors back in a reasonable time, they may grant a composition order – this means some of your debts could be written off.
To apply for an Administration Order you should complete an N92 form – available through the gov.uk website – and take it to your county court. Once the document has been signed in front of a court officer, the repayment plan is presented to your creditors.
They have around 14 days to confirm any objections or amendments to this. Assuming there are none, your Administration Order should be approved and set up within a few weeks. However, if a creditor does object, then a separate hearing will take place to resolve the matter.
One of the elements looked at during your application will be how long debts should take to resolve based on how much you can pay. The court will examine your creditors – and the amount owed – and specify a “reasonable period”.
However, if it would take an excessive amount of time to repay your debts, a composition order could be implemented instead. These usually last for three years and focus on paying back as much of the debt as possible.
Once the Administration Order is approved, you’ll make monthly payments to the court. They will divide this sum between your creditors. Every time you make a payment, there will be a fee. This varies from person to person but will not be more than 10% of your total debt.
For example, if you owe £2,000, you won’t pay more than £200.
Being taken to court for debts is unfortunately quite common. In 2019, more than one million county court judgements were issued*.
*According to Credit Strategy, 'Debt judgments hit highest peak on record', January 2020.
Although we cannot assist with setting up an Administration Order, we can identify whether another debt solution such as an IVA is a better solution. To speak with one of our specialist debt advisors, give us a call or click the button below.
With no obligation on your part, we’ll be happy to assess your circumstances and identify whether an Administration Order is a suitable option.
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* As of 10/02/22 20,601 of our customers were in an active IVA. ** Average unsecured debt anticipated to be written off for IVAs approved between 1 January 2021 and 31 December 2021 for FSS customers is £10,645.20, based upon successful completion. *** Based on independent verified reviews from Feefo.
A country court judgement can be issued by the courts in England, Wales, and Northern Ireland if you’ve failed to pay your debts. This will not come out of the blue and, before seeking this ruling, a creditor must notify you that they are taking legal action.
The county court judgement will detail what you owe, to who, and how much you need to repay.
A high court judgement is a formal decision which states – after deliberation and weighing up the facts – you owe money.
An Administration Order, when compared with some debt solutions, does have pros and cons. For example:
Advantages
Disadvantages