Debt Help Guides Menu - Please Select... A Guide to UK Mortgage Types Administration Orders - What is an Administration Order? Are Bank Charges Lawful ? Attachment of Earning Orders Bailiffs: What they are entitled to do and Your rights Bankruptcy IVA Comparisons Charging Orders - What is a Charging Order? Credit Reports, Credit Files and Credit Blacklists. Credit Reports: Fixing Errors on your Credit Report Credit Reports: Reasons for a Poor Credit Score Debt Consolidation Debt Help - Budgeting Tips FAQ - Dealing with debt, ways to help debt problems Gambling & Debt: Are gambling debts enforceable? Harassment from Creditors and Debt Collectors How Can I Consolidate My Debt Without a Loan ? How can I get a CCJ removed? Insolvency Glossary of Terms - Jargon Buster Limitation Act 1980 and Unsecured Debts. Loans UK - Secured Loans FAQ Loans UK - Unsecured Loans FAQ Mortgage Arrears - Advice for those with Money Problems New UK Bankruptcy and Insolvency Laws OFT (Office of Fair Trading) Debt Management Guidelines Refused Credit ? Refused a Loan ? Repossession Advice Sequestration - Bankruptcy in Scotland SIVA - Simple IVAs Statutory Demands Tax and Debt: Magistrates’ Courts Proceedings Tax and Debt: What is Distraint ? The Right to Offset - Why you should avoid debts with your Bank. Time Orders - What is a Time Order? UK Insolvency Forms UK Bankruptcy Advice - Truths and Myths, FAQ UK Insolvency Advice - Business Bankruptcy UK Insolvency Advice - Liquidation UK State Benefits What Debt Help Options are available to me ? What is a PVA ? (Partnership Voluntary Arrangements) What is a CVA ? (Company Voluntary Arrangement) What is a Trust Deed ? Which types of debts are Dischargeable within Bankruptcy ? Your legal rights: Coping with many Debts Your legal rights: Council Tax Debt Your legal rights: Dealing with Bailiffs & Debt Collectors Your legal rights: Gas, Electric and Water Bill Debts Your legal rights: Hire Purchase (HP) Debt Problems Your legal rights: Legal Protection for UK Residents with Debts Your legal rights: Loan and Credit Card problems Your legal rights: Rent or Mortgage Payments Your legal rights: When you can be in Prison with Debt.

Administration Orders - What is an Administration Order?

If you happen to have debts of less than £5,000, an outstanding CCJ, and two or more creditors, an Administration Order can enable you to make reduced repayments. An administration order effectively allows people to make one affordable payment to the court that covers all of one’s debts. The court then divides your monthly payment among your creditors. The court will also manage all of your debts and deal with your creditors directly, so you do not have to. Once the order has been enforce, the creditors named on the order are not allowed to enforce payment or make any effort to bankrupt you without first consulting the court.

When you fill out an application for an administration order, you do not have to pay a fee. The court will, however, deduct ten percent for its costs from each payment you subsequently make. What this means is you wind up having to pay back 111.1 percent of the original debt.

Token Payments

In the event that you have a low income or receive benefits, the court may decide that a token payment of around 5 pounds per month is reasonable.

Do I Qualify for an Administration Order?

In order to qualify for an administration order, you have to have at least two debts. You also have to have at least one debt that is either a High Court or county court judgment. Finally, your debts cannot exceed five thousand pounds. In the event that you satisfy all of the above requirements, you will likely qualify for an administration order. In the event that you do not qualify or are confused as to your qualifications, feel free to contact Betterway for free advice.

Composition Orders

A composition order is similar to an administration order. It enables you to only pay part of your debts off, with the rest being written off. Composition orders are granted to those individuals who will likely be unable to pay off certain of their debts within a reasonable amount of time. It is suited for low-income people, such as the sick, the elderly, the unemployed, and single parent households.

In the event that you do not qualify for either a composition order or an administration order, you may want to look in to either IVAs or Debt Management as a solution to your debt problems. Abacus can provide free advice on both of these services.