County Court Administration Order (CCAO)
An administration order allows you to make affordable payments to cover all your debts when one or more of them is already subject to a Court order.
If you cannot afford to meet the terms the of the CCJ and you have other debts, you can explain this to the Court in applying for a CCAO.
If you’ve been to Court over a debt, a County Court judgment (CCJ) is issued formally detailing the terms you are required to repay it. However, the Court does not necessarily know your financial situation nor of other debts you must pay.
If the CCAO is awarded, you make regular payments to the Court which is shared between your creditors in proportion to how much owed to each.
There is no upfront fee, but the court takes 10p of every £1 you repay.
Can I get an Administration Order?
You can ask the Court who issues the CCJ to make an Administration Order if:
- You owe no more than £5,000 in total to at least 2 creditors; and
- You have a CCJ against you by one of your creditors that you can’t pay as per its terms.
Administration Order Benefits
Creditors included cannot take further action against you without the Court’s permission.
Just a single payment to make
The Court deals with the creditors and shares out the payments for you.
If your circumstances worsen, you can apply to the Court to reduce payments.
Stops all interest and charges
This applies to all debts included in the order.
Administration Order Considerations
Creditors can object
Creditors can object to the Court and ask to be excluded from the order. The Court need not agree to this.
Failure to maintain payments
If you don’t keep up your payments, the order can be revoked and the creditors can pursue you again.
Risk of attachment of earnings order
If you don’t keep up your payments and the Court can make an order to take money directly from your wages or benefits.
All unsecured debts to be included
You can’t be selective. You must treat all your unsecured creditors equally by including them all.
This type of order should not be confused with a company going into administration; it does not impact the running of any business you have; nor is it a form of insolvency.
A Composition Order is a variation to a CCAO where, instead of being ordered to repay the full amount of your debts, you will be ordered to only pay a percentage of what you owe, with the remaining amount being written off.
We do not currently provide County Court Administration Orders, but offer a free consultation to determine your suitability and offer some free assistance in applying.