Administration Order

An administration order under s.112 of the County Courts Act 1984 allows a debtor who owes less than £5,000 and has at least two debts, one of which is subject to a county court judgement, to make a single monthly payment to the court. The court distributes the payment proportionally among creditors. It provides the debtor with protection from enforcement by individual creditors.

In practice

Administration orders are increasingly rare in practice due to the £5,000 threshold, which has not been updated since 1984. While in force, no creditor named in the order may enforce their debt without the permission of the court. The court may also include a composition order, reducing the total amount the debtor must pay. This should not be confused with company administration under the Insolvency Act 1986.