Administration Order

Key facts

How much debt must I owe? £5,000 or below.

What type of debt? Use this option for credit debts and some priority debts.

How long will it last? You can ask for a ‘composition order’, which means the debts may be written off after a shorter time such as two or three years. Otherwise, there is no time limit. You may be paying for many years.

How it works

See our fact sheet:

Administration orders.

You must have a county court or high court judgment. Your debts must be no more than £5,000. You must have at least two debts.

An application is made to your local County Court on a form N92.

An administration order (AO) is a county court order which allows you to make a single payment every month to the court. The court divides this between your creditors on a pro-rata basis.​

Advantages

  • None of the creditors listed on the AO application can take further action against you without the court’s permission.
  • The court deals with your creditors and makes the payments for you.
  • Interest and other charges are stopped.
  • There is no up-front fee, although the court takes 10p from every £1 paid in.
  • You can apply to make payments for a time-limited period such as three years using a ‘composition order’.
  • You can increase payments where your circumstances improve.
  • You can apply to the court to make reduced payments if your circumstances get worse.

Disadvantages

  • You must have total debts below the £5,000 limit.
  • Creditors can make objections to the court and ask to be left out of the order (although the court may not agree with this).
  • Your ability to get further credit will be affected.
  • If you do not maintain your payments, the AO can be revoked and the creditors can pursue you again.