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Administration Order UK — What It Is, Who Qualifies and How It Works

An administration order lets the county court manage your debts if you have a CCJ and owe under £5,000. This guide explains eligibility, how payments work, and the alternatives.

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An administration order is one of the least-known debt management tools in England and Wales. If you have received a County Court Judgment and owe less than £5,000 in total, you may be able to ask the court to manage your debts through a single monthly payment — stopping interest, preventing further creditor action, and giving you a structured path to clearing what you owe.

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Who Can Use an Administration Order

Administration orders are available in England and Wales only (Scotland has different debt management procedures). The strict qualifying criteria are:

Criterion Requirement
Court Judgment Must have at least one County Court Judgment (CCJ) against you
Total debt ceiling Total qualifying debts must be £5,000 or under
Multiple creditors Must have more than one debt (the order is designed to consolidate multiple creditors)
Income Must have some regular income — enough to make a court-set monthly payment

The £5,000 ceiling makes this option unavailable to most people with serious debt problems, but it works well for people with small, manageable debt burdens that have escalated to the CCJ stage.

How to Apply

  1. Obtain form N92 from the county court that issued your CCJ (or download from GOV.UK)
  2. List all debts and creditors — the order covers all debts in the schedule, not just the CCJ
  3. Propose a monthly payment amount — the court may adjust this
  4. Submit to the county court — no application fee for administration orders
  5. Court notifies creditors — they have 16 days to object
  6. Court hearing — if uncontested, the order may be made without a hearing

How Payments Work

Once the order is made:

  • You make one monthly payment to the court
  • The court deducts a fee (up to 10% of the payment) and distributes the remainder to creditors proportionally
  • All interest and charges freeze on the debts included in the order
  • Creditors cannot take any further enforcement action without returning to court

If a creditor objects to the order, the court will hold a hearing to consider the objection. Creditors rarely succeed in blocking orders where the debtor clearly cannot pay more.

Standard Administration Order vs Composition Order

Type What happens Best for
Standard administration order Repays all debts in full over time People who can repay eventually, just need time
Composition Order Court sets a total repayment amount (less than full debt); remainder written off People who genuinely cannot repay in full

A Composition Order can be attached to an administration order where the court accepts that you cannot repay in full within a reasonable period. Typically, this results in a 3-year payment schedule with remaining debt written off at the end.

Impact on Your Credit File

An administration order is recorded on the Register of County Court Judgments and on your credit file for 6 years from the date of the original CCJ (not from the date of the order). This is the same credit impact as the CCJ itself — the order does not add a separate 6-year period.

Varying or Revoking the Order

If your circumstances change:

  • Payment reduction: You can apply to the court to reduce your monthly payment if your income falls
  • Order suspended: The court can suspend the order if you repeatedly miss payments — giving you a temporary stay
  • Order revoked: If you fail to maintain payments and the court revokes the order, creditors can resume enforcement action immediately
  • Early completion: If you pay off all debts early, the order is discharged

Administration Order vs Other Debt Solutions

Factor Administration Order DMP IVA Bankruptcy
Debt ceiling £5,000 None None None
CCJ required Yes No No No
Interest frozen Yes Creditors’ discretion Yes (legally) Yes
Debt written off Only with Composition Order No Yes — remaining balance Yes
Court involvement Yes No Yes (insolvency practitioner) Yes
Credit impact 6 years 6 years 6 years 6 years

For smaller debts that have reached the CCJ stage, an administration order is often the most cost-effective route. For larger debts or people without CCJs, a DMP or IVA is more appropriate. For help deciding, see the Free Debt Advice guide.

Sources

  1. GOV.UK — Administration Orders
  2. Citizens Advice — Administration Order