Administration Order

Advantages:

• It allows you to put forward, through an officer of the court, a realistic offer of repayment to creditors, if you have one available.
• Creditors can’t take further action collections activity against you once the order is granted.
• You may be able to avoid having to sell your home, or non essential assets if your spouse, partner or a relative can buy your share of its value after any debts secured on it have been paid.
• If your income is so low that you cannot afford to repay the debt in full in a reasonable time (usually 6 years) it is possible to apply for a composition order which will limited repayments to usually 3 years and any debt you cannot afford to repay in this time is written off.

Disadvantages:

• The court may not grant the order as it is subject to individual circumstances.
• You will be subject to a monthly charge of 10% of your repayments by the court for supervising the order.
• You will be unable to obtain further credit during the order.
• An order is registered against your credit file for a minimum of 6 years and will affect your ability to obtain further credit.