03-Nov-2011
What are the Advantages?
- Your listed creditors will not be able to take any action against you while the order is in place without the consent of the court. Letters, phone calls and visits from debt collectors will stop.
- In addition to this, the interest and other charges on your debt will be stopped - preventing your debt from worsening further.
- If your circumstances change for the worse then you can apply to court to reduce the payments that you are making.
- There are no fees to pay up front or in full to the court, rather a handling fee will be charged. The handling fee is 10% of your total debts and is deducted from the payments you make.
- An administration order will last until your debts are completely paid off.
What are the Disadvantages?
- Your listed creditors can object to and possibly be left out of the county court administration order
- If you do not keep up with the required payments then the administration order can be revoked allowing your creditors to begin pursuing you again.
- If the court decides to make an attachment of earning order to collect payment then your employer will notified about your debts.
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