Published in on Monday, April 27 2009 by Ideal Debt Solutions
If you have total debts of less than £5,000 and are struggling to pay them off – and have at least one County Court (or High Court) Judgement issued against you – then an administration orders may be a good solution.
Perhaps the best thing about an adminstration order is that it gets the creditors off your back – and that it is couched in legal terms. In other words, if you are faced with hassle from creditors after an administration order has been made, then those creditors face potential prosecution.
An administration order is a court order which covers all your unsecured debts. This means you make one regular payment and the court distributes it on your behalf to all your creditors.
Under the terms of an administration order your creditors are not allowed to take any kind of action against you once the order is in place – nor to demand money in any way. You only have to make one monthly payment – and that payment is based on what you can afford; most usually over a three year period.
The downside is that the court charges you for this service and the fee may be anything up to 10% of your total debt. This amount will be taken before payments to your creditors are made and if you miss a payment the arrangement may not be valid.
Nevertheless, an administration order brings clarity and peace of mind to many people who were previously struggling to make payments and who may have been facing aggressive and/or unreasonable demands for payments from creditors.
If you think an administration order is the right solution, you have to apply directly to the court. You will need to complete form N92, which can be obtained from your local court office. You’ll need to include all your debts - whether they are in your name only or not. The court will usually take payments directly from your wages – though you can specify that you do not wish to pay it this way.
If you’re struggling to pay off your debts, there are many steps you can take, but it’s essential to take expert personal debt advice as soon as you can.