Care and support

How do I apply for an administration order?

Ask your local county court for form N92 (application form) and N270 (notes to help fill it in). If you have access to the internet these are available from www.hmcourts-service.gov.uk. Form N92 asks for some basic personal details, a full list of creditors, addresses, account numbers and how much you owe. You will also have to list your weekly income and outgoings.

When you have filled in the form, take it to your local county court with a copy of your court judgment. Some courts will want to see copies of any letters from your creditors. Your application is dealt with by court staff over the counter. They will ask you to read a short statement swearing the truth of the details you have given. ou do not have to pay a fee up front.

The court takes its costs from each of the monthly payments that you make. This is currently 10p for every £1 you pay. For example, if you pay £20 a month, £2 will be taken by the court and £18 will be divided between your creditors.

How much will I have to pay a month?

The amount is set by court staff and varies depending upon how much you owe, and what you can afford to pay. The court will expect you to pay cash. Generally, the monthly payments will be set to clear your debts over 3 years but administration orders can run for longer than this. However, it may be possible to pay less than your total debts by applying for a composition order as part of your administration order (see below).

What happens if I cannot afford to clear all my debts in this time?

The court can let you pay a percentage of your overall debts. This is called a composition order. For example, if you owe £3,500, you would need to pay nearly £100 per month to pay this off in 3 years. A composition order of 50% would mean you would pay £50 per month and at the end of 3 years the other half of your debts would be cancelled.

Court staff cannot give you a composition order, only a district judge can do this. If you ask for one, you will probably have to go to a court hearing (see below).