There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Administration Order
If you have had a court judgement against you regarding your debt then one of your options in terms of a debt solution is to get an administration order, or County Court Administratin Order (CCAO). By going down this route the court will be able to make a judgement as to how much you can reasonably be expected to pay each month, after essential bills and living costs have been taken in to account. Once the order has been set up your creditors will not be able to harass you for any more payments.
If you think this might be the best way to deal with your debt problems, contact DebtAdvice.net for free debt advice, and we'll be able to advise on whether it really is your best option, and give further details on how to go about getting an administration order..
SUITABLE?
Is An Administration Order Suitable For You?
There are certain requirements that you have to meet in order to be eligible for an administration order. These include:
You must have had a court judgement against you (for example, a CCJ),
Your debt must be unsecured and be less than £5,000,
You must have at least two creditors.
If this applies to you and you think an administration order would be your best option then get in touch to get a second opinion from our experienced Debt Counsellors. The debt advice we give is completely free, and we will be able to give you further information as to how to apply for an administration order.
There are certain requirements that you have to meet in order to be eligible for an administration order. These include:
You must have had a court judgement against you (for example, a CCJ), Your debt must be unsecured and be less than £5,000, You must have at least two creditors.If this applies to you and you think an administration order would be your best option then get in touch to get a second opinion from our experienced Debt Counsellors. The debt advice we give is completely free, and we will be able to give you further information as to how to apply for an administration order.
HOW WORK?
How Do Administration Orders Work?
When you apply for an administration order you will have to provide details of your debt, your creditors, your income and expenditures and what you can realistically afford to pay.
Once this has been sent in, the court will inform your creditors of your application for an administration order. They have 16 days to reply with any objections, and if they, and the court, feels that the amount you are willing to pay is fair then the order will be put in place.
If your creditors do wish to object then a hearing will be arranged in which you can make your case and they can make their objections. As long as the issues are resolved, then the order will go ahead with any amendments.
Once the administration order is in place, you will pay the court what you owe, and they will distribute the payments to your creditors (usually there is a 10% monthly fee for the court's costs).
For more information on this or for free advice on debt, get in touch.
When you apply for an administration order you will have to provide details of your debt, your creditors, your income and expenditures and what you can realistically afford to pay.
Once this has been sent in, the court will inform your creditors of your application for an administration order. They have 16 days to reply with any objections, and if they, and the court, feels that the amount you are willing to pay is fair then the order will be put in place.
If your creditors do wish to object then a hearing will be arranged in which you can make your case and they can make their objections. As long as the issues are resolved, then the order will go ahead with any amendments.
Once the administration order is in place, you will pay the court what you owe, and they will distribute the payments to your creditors (usually there is a 10% monthly fee for the court's costs).
For more information on this or for free advice on debt, get in touch.
EFFECTS?
What Are The Effects Of An Administration Order?
The purpose of getting and administration order is that you reduce unmanageable debts to affordable monthly payments. As long as you keep up with these repayments, at the end of administration order you will be debt free.
There is no set date as to how long that an administration order can last for, however you can also apply for a composition order at the same time. This will allow your remaining debt to be written off after a certain amount of time of making payments.
At the end of the administration order you can get a “Certificate of Satisfaction” form from the court to indicate that you have paid off all your debt.
An administration order remains in your credit reference file for 6 years.
The purpose of getting and administration order is that you reduce unmanageable debts to affordable monthly payments. As long as you keep up with these repayments, at the end of administration order you will be debt free.
There is no set date as to how long that an administration order can last for, however you can also apply for a composition order at the same time. This will allow your remaining debt to be written off after a certain amount of time of making payments.
At the end of the administration order you can get a “Certificate of Satisfaction” form from the court to indicate that you have paid off all your debt.
An administration order remains in your credit reference file for 6 years.
ADVANTAGES
Advantages of Administration Orders
The court handles the debt on your behalf,
You might get some of your debt written off if you take out a composition order at the same time,
There will be no additional charges or interest on the debt,
There is only a small handling fee from the court, no upfront fee.
The court handles the debt on your behalf, You might get some of your debt written off if you take out a composition order at the same time, There will be no additional charges or interest on the debt, There is only a small handling fee from the court, no upfront fee.DISADVANTAGES
Disadvantages of Administration Orders
If you don't keep up with your payments then the order will be withdrawn meaning that your creditors can pursue you again,
If creditors do not agree with the arrangement, they can be left off the order,
Your employer may learn of your financial situation if the court includes an attachment of earnings order.
If you don't keep up with your payments then the order will be withdrawn meaning that your creditors can pursue you again, If creditors do not agree with the arrangement, they can be left off the order, Your employer may learn of your financial situation if the court includes an attachment of earnings order.Contact Us
If you would like more information about administration orders, including the details on how to apply for one then contact Debt Advice for free. Tell us about your financial situation and will be able to give you private and confidential debt advice for free.