Debt Relief Order
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Bank Loan Debt
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An administration order is a debt solution obtained through the courts. A legally binding arrangement, it’s an agreement between you and your creditors to resolve your debts over time.
To obtain one of these, a creditor must first take legal action against you through either a high court or county court judgment. If you cannot pay this in full, you could apply for an administration order to resolve the debt providing:
To apply for an administration order you should complete an N92 form – available through the gov.uk website – and take it to your county court. Once the document has been signed in front of a court officer, the repayment plan is presented to your creditors.
They have around 14 days to confirm any objections or amendments to this. Assuming there are none, your administration order should be approved and set up within a few weeks. However, if a creditor does object, then a separate hearing will take place to resolve the matter.
One of the elements looked at during your application will be how long debts should take to resolve based on how much you can pay. The court will examine your creditors – and the amount owed – and specify a “reasonable period”.
However, if it would take an excessive amount of time to repay your debts, a composition order could be implemented instead. These usually last for three years and focus on paying back as much of the debt as possible.
The documents associated with an administration order can be complex and time-consuming. Although there are technically no debts which can be excluded from this arrangement, you should still seek professional advice before initiating your application to ensure this is the best solution for you.
To speak with one of our specialist debt advisors, give us a call on 0161 956 2680 or complete our contact form. With no obligation on your part, we’ll be happy to assess your circumstances and identify whether an administration order is the most suitable option.
Debt write off applies to unsecured debts and on completion of an IVA. A debt write off amount of between 20% and 80% is realistic, however the debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors.
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Free money help and advice can be found at the MoneyAdviceService.org.uk