Are you burdened with debts? Want to write them off? Apply for an Administration Order. It is a court order which will help you to clear your arrears. Here you will have to make payments every month to the court. The court will be dealing with your creditors as it will distribute this amount on a pro-rata basis. For this, the court generally charges 10% of your payment as handling fees, which is deducted directly from the payments you make. Once an administration order is in place, no creditors can take any action against you. Even the debt collection procedures and letters will not be sent to you anymore.
To apply for an Administration Order, you must fulfill certain criteria:
• You should have at least one County Court Judgment or CCJ issued against you.
• You should have at least two creditors.
• Your total debt amount must be less than £5,000.
To apply for an administration order in UK, you will have to fill up a N92 form. This form is available in your local court office. This form will list all your debts, which should not exceed £5,000. Remember that Administration Orders are granted only to individuals. Even if finances are shared, application should be made separately. If you are employed an Attachment of Earnings Order will be made.
If you are including debts related to mortgages, maintenance, child support, hire purchase, you should only write down the arrears owing. For a rent or mortgage arrears, make sure you get adequate help from a Debt Adviser before you fill in the application form. You might also ask the court to include a housing debt on an administration order. For including gas or electricity arrears to an Administration Order it is likely you will be asked to have a pre-payment meter fitted.
Once your Administration Order is granted, you will have to ensure that you make payments in time. If not, then your order can be revoked by the court. Your creditors can again get back to you. If at any point you feel, you cannot afford the payments, you can ask the court to review the order and reduce the payments.
Once you have made full payments, you can get a “Certificate of Satisfaction” from the county court. For this you will have to pay £15. All the details regarding you order will be recorded on the Register of Judgments, Orders and Fines. This will remain on your credit file for 6 years. Nevertheless, if your creditors keep pestering you, send them a copy of the order.
Article, courtesy of Debbie Brown from www.yesdebtfree.co.uk
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Disclaimer: Credit Control Solutions are not responsible for the information contained within this article and do not warrant that the information is correct or accurate.
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