What is a County Court Administration Order?
- Posted by: breathe
- Category: Uncategorized
It is a court- based insolvency procedure which allows you to pay off all of your debt(s) in full or partially on a clearly defined basis. You may apply for such an Order if you strictly meet the necessary criteria or if the County Court sees fit to order one.
What is/are the criterion for a County Court Administration Order?
1) You must have one or more creditors that you owe no more than £5,000, in aggregate.
2) You must be unable to pay the debt(s) in full.
3) At least one of the debts must be a County Court Judgement (CCJ) with the same local County Court.
How are my County Court Administration Order debts repaid?
The County Court will remit your monthly or weekly contributions to your creditors on your behalf.
How much will a County Court Administration Order cost?
The County Court does not take an upfront fee, they usually take up to 10% of your monthly contributions but if you are only required to pay off a certain percentage of your debts, this is still a cheaper option than other alternatives.
What are the advantages of a County Court Administration Order?
- It is then possible to clear the CCJ from your credit rating. For further assistance regarding your Crediting rating please give us a call and one of the Breathe Financial team will discuss how the Seminar could help you.
- You only make one payment per month and it is based on your monthly or weekly affordability.
- Creditors cannot come after you once you are in the “Arrangement”.
What are the disadvantages of a County Court Administration Order?
Similar to all other insolvency procedures, failure to comply with the Order will result in its early termination. Failure means that the CCJ will remain on your credit rating file marked as Unsatisfied. Creditors are then free to commence further actions against you, e.g. Bankruptcy.