Administration Order
If you have a county court or high court judgment on at least one of your debts, and you have at least two debts in total, and your total debts are £5,000 or less, you may be able to apply for an Administration Order (‘AO’).
An (AO) is a court order which allows you to make a single monthly payment which the court then divides between your creditors.
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, after which the rest of your debts could be written-off.
You can vary your payments if your situation changes.
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 credit rating will be affected.
If you do not maintain your payments, the AO can be revoked and the creditors can pursue you again.
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