What is an administration order?

An administration order allows a debtor to pay a sum they can afford into the court each month to cover all their debts (see also composition order). The court will divide the debtor's monthly payment among their creditors. The court will manage the debt and deal directly with the debtor's creditors. Whilst the order is in place none of the creditors may try to enforce the debt or try to make the debtor bankrupt (insolvent) without first asking the court.

The debtor does not pay a fee for the application but the court does deduct 10 pence in every £1 paid to cover its costs.

If the debtor does not keep up with instalments the court may send the Enforcement Agent (Bailiff) to take and sell their possessions or make an attachment to earnings order to enforce payment. Alternatively, the court may cancel (revoke) the order and the debtor's creditors can then take action against the debtor separately to recover their debts.

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