A County Court Administration Order is available to individuals who owe no more than £5,000 to at least 2 creditors. They must also have a County Court judgement against them by one of their creditors which they can’t repay in full. This option allows debtors to make a formal arrangement through the court to repay the debt at a rate they can afford. An administrator of the court would receive the debtor’s income and after deducting a reasonable amount for essential living costs as well as a 10% administration fee will make proportionate payments to their creditors.
Creditors listed on the order cannot take any further action with regard to recovery of the debt without prior permission from the court. Creditors may object to the order by presenting their objections to the court and requesting to be left out however, it would be down to the judge to determine if this is to be granted.
The County Court Administration Order will last until the debt has been repaid in full, although it is possible to apply to make payments for a limited time, usually 3 years by applying for a Composition Order, which can be granted by a District Judge in cases where a debtors disposable income is so low that the debt would take an unreasonable amount of time to repay (usually exceeding 6 years). On successful completion of the agreed repayment plan and term, under a composition order any remaining debt would be written off and creditors could not legally pursue the debtor for any further repayment.