What is an...

Administration Order

An Administration Order is an insolvency similar to bankruptcies, Individual Voluntary Arrangements and Debt Relief Orders. They are a legally recognised agreement between you and your lenders to repay your owed debts.

The court will determine the amount that you’ll have to pay back to your creditors. Like other forms of insolvency, the main purpose is to draw a line under your current financial predicament and to protect you from your creditors pressing you for repayment. Once granted, creditors are not allowed to pursue you for debt.

If you have one, an Administration Order will be removed from your Credit Report after six years, as long as it’s marked as ‘Discharged’.

How does an Administration Order affect my Credit Rating?

An Administration Order will have a severe adverse impact on your Credit Rating, for the full duration that it appears on your Credit Report.

You can check the status of any Administration Order, as well as your wider credit history, by checking your Credit Report. checkmyfile makes this process easy by gathering your information from all four Credit Reference Agencies, saving you time and ensuring that nothing important is missed.

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What are the requirements for an Administration Order?

You must have an outstanding County Court Judgment issued against you and owe less than £5,000 in total.

One advantage of an Administration Order is that unlike bankruptcy, there is no up-front fee to pay, but the courts take 10% of your total debts as a fee, so it’s not entirely free.

Administration Orders severely damage your Credit Rating for at least six years, so it is a good idea to speak with the court or a recognised debt charity before acting.

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