Administration Orders

An administration order (AO) is a formal and legally-binding agreement between the defendant and their creditors to pay back the debts over a period of time.

To get an AO the defendant must have:

  • debts that are no more than £5000 in total
  • an unpaid county court judgment (CCJ)
  • two or more debts

If an AO is granted, this provides protection from further action by creditors in respect of any debts listed under the order.

Creditors not included in the order cannot pursue their debts separately through the courts – if they try, these debts are automatically added to the administration order.

AO’s are shown as either satisfied, unsatisfied, varied or revoked on the Register. Satisfied means the order has been paid in full, unsatisfied means it has not.

A varied administration order is where the amount of debt agreed under the original administration order is changed, or a new debt is added. A varied order replaces the original administration order.

If regular payments ordered by the court are not made, the arrangement under the administration order may be withdrawn and the order revoked. This releases the creditors from the restrictions imposed and enables them to take further legal action – either obtaining a judgment where one does not already exist or making a bankruptcy application.

AO’s stay on the statutory register for six years unless set-aside/cancelled.
Under the Insolvency Act 1986, an administration order may also be made against a limited company. Details of these administration orders are notified to Companies House but are not held on the Register.

The information appearing on the Register is as follows:

  • the name and address of the defendant
  • details of the court and case number
  • the amount and date of registration
  • satisfaction details once Registry Trust has been notified by the court

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