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Administration Order (CCAO)

What is a County Court Administration ORder?

An Administration Order is a solution for debts of less than £5,000. It is imposed and administered through your county court. You can ask the court to make an administration order if:

  • You owe no more than £5,000 to atleast 2 creditors; and
  • You have a court judgement 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, which shares them among your creditors, in proportion to the amounts 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 the court for sharing among your creditors.

Administration Order Advantages

  • None of the creditors listed on the administration order application can take further action against you without the court’s permission.
  • The court deals with the creditors and shares out the payments for you.
  • Interest and other charges are stopped.
  • There is no upfront fee – the court takes 10p of every £1 you repay.
  • 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.

Administration Order Disadvantages

  • Creditors can put objections to the court and ask to be left out of the order. The court need not agree to this.
  • If you don’t keep up your payments, the order can be revoked (withdrawn) and the creditors can pursue you again.
  • If the court makes an attachment of earnings order, your employer will find out about your money troubles.

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IVA Example

Example of an IVA

A couple were jointly paying creditors over £700 per month. We were able to have this payment reduced to £300 per month, with all interest and charges frozen. After 8 months of paying this reduced sum, they proposed to remortgage their home. This was successful and they released £19,000. Their creditors accepted this as a full and final settlement of their debts.

IVA Examples

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