Administration Orders Explained: How to Manage Small Debts Under £5,000
Published 20th of August 2017·Updated 25 April 2026
Reviewed by: Reviewed for accuracy April 2026
An administration order is a court-managed repayment plan for people who owe £5,000 or less across two or more county court judgements (CCJs). The court takes over the administration of your debt, sets an affordable monthly payment, and prevents your creditors from chasing you individually. It is available in England, Wales and Northern Ireland.
Short Summary
An administration order consolidates your debts into one affordable monthly payment managed by a county court. You must have at least two CCJs and owe no more than £5,000 in total.
The court charges an administration fee of up to 10% of the debt, deducted from each payment before it is divided among creditors. This means your creditors receive slightly less than you pay each month.
Your details are recorded on the Register of Judgements, Orders and Fines for six years. This will make it harder to get credit, a mortgage, or a bank account during that period.
If the court decides you cannot repay the full amount in a reasonable time, it may issue a composition order instead, writing off the remaining debt after typically three years of payments.
If you are unsure whether an administration order is right for your situation, a free debt adviser from StepChange or Citizens Advice can help you compare your options.
What is an administration order?
An administration order is a legal arrangement where a county court takes over responsibility for managing your debts. You make a single monthly payment to the court, and the court divides that money among your creditors. Creditors listed on the order cannot take separate legal action against you while the order is in place.
Once the order is granted, creditors are given 16 days to raise objections. After that window closes, you are protected from further action on the debts included in the order.
Who qualifies for an administration order?
To apply for an administration order, you must meet all of the following criteria:
| Eligibility condition | Detail |
|---|---|
| Number of court judgements | At least two CCJs or high court orders against you |
| Total debt limit | Combined debts must be £5,000 or less |
| Number of creditors | You must owe at least two creditors |
| Affordability | You must be able to demonstrate you cannot repay debts at their current rate |
You also need a regular income so the court can assess what you can reasonably afford to pay each month. The court will look at your income and outgoings before setting your monthly payment.
How much does an administration order cost?
The court deducts an administration fee of up to 10% from every payment you make. This fee is taken before your creditors receive their share. For example, if you pay £100 per month, the court keeps up to £10 and distributes the remaining £90 among your creditors.
There is no upfront application fee. The 10% charge is the only cost, and it is spread across your payments for the life of the order.
How long does an administration order last?
The order lasts until your debt is repaid in full. The duration depends on how much you owe and what the court decides you can afford each month. If you owe £1,200 and the court sets payments at £100 per month, the order would run for 12 months.
If the court concludes you cannot clear the full amount within a reasonable timeframe, it may grant a composition order instead. Under a composition order, you pay what you can afford over a fixed period (usually three years), and any remaining balance is written off at the end.
What is a composition order?
A composition order is a variation of an administration order used when you cannot realistically repay the full debt. The court sets your payments based on affordability, and when the order ends, the remaining debt is cancelled. This can offer significant debt relief for people with very limited income.
Not all courts apply composition orders in the same way. Citizens Advice recommends speaking to a debt adviser before applying to understand which outcome is likely in your area.
What debts can be included?
Most county courts primarily include unsecured debts in an administration order. These include credit card debt, personal loans, overdrafts and catalogues. Some courts may allow certain fines or secured debts to be included, but policies vary by authority.
Speak to a debt specialist or a free adviser at StepChange (0800 138 1111) to confirm which of your debts would be eligible before you apply.
What happens to your credit record?
Your details are entered on the Register of Judgements, Orders and Fines for England and Wales. This information remains visible for six years from the date the order completes. During this period, most high-street lenders including Barclays, HSBC and Halifax will see the entry and it will significantly affect your ability to borrow.
The register records: your name, address, court order number, the total amount ordered, the date of the order, and whether it was satisfied or remains unsatisfied.
When you repay in full, the entry is marked "satisfied". If you do not repay in full, it is marked "unsatisfied", which is more damaging to future credit applications.
What if your circumstances change?
If your income drops or your outgoings increase, contact the court straight away. The court can amend the order to reflect your new financial situation. You do not need to miss payments first; notify the court as soon as you know your circumstances have changed.
If you stop making payments and do not contact the court, the court may revoke the order. Once revoked, your creditors can pursue you individually for the full amount and may petition for your bankruptcy.
Administration order vs other debt solutions
| Debt solution | Debt limit | Affects credit record | Debt written off? |
|---|---|---|---|
| Administration order | Up to £5,000 | Yes, 6 years | Partially (composition order only) |
| Debt Relief Order (DRO) | Up to £30,000 | Yes, 6 years | Yes, after 12 months |
| IVA | No limit (typically £10,000+) | Yes, 6 years | Yes, remaining balance |
| Bankruptcy | No limit | Yes, 6 years | Yes, most debts |
| Debt Management Plan (DMP) | No limit | Depends on missed payments | No |
According to the Money Advice Service, the right solution depends on the total amount you owe, your income and your assets. A free debt adviser can help you compare these options without any obligation.
Frequently Asked Questions
Can I apply for an administration order if I only have one CCJ?
No. You need at least two county court judgements or high court orders to qualify. If you only have one CCJ and owe £5,000 or less, a Debt Relief Order or a Debt Management Plan may be more suitable alternatives worth exploring.
Does an administration order stop creditors from contacting me?
Yes. Once the order is in place, creditors listed on the order cannot take further legal action against you or contact you demanding payment. Any creditor who attempts to do so is in breach of the court order.
Will an administration order affect my job?
For most jobs it will have no impact. However, certain regulated roles in financial services require you to disclose county court orders, and your employer may be informed. Check your employment contract or speak to your HR department if you are unsure.
What happens if I cannot keep up with payments on my administration order?
Contact the court before you miss a payment. The court can review your case and may reduce your monthly payment. If you miss payments without contacting the court, it may revoke the order and leave you exposed to individual creditor action, including potential bankruptcy proceedings.
Is an administration order the same as a Debt Relief Order?
No. A Debt Relief Order (DRO) is a separate insolvency solution for people who owe up to £30,000, have few assets and a low income. A DRO writes off eligible debts after 12 months and is administered by the Insolvency Service rather than a county court. Administration orders are managed by the court and only apply to debts of £5,000 or less.
How do I apply for an administration order?
You apply at your local county court. You will need to complete form N92 (application for an administration order) and provide details of your debts, creditors and income. There is no application fee. StepChange and Citizens Advice can help you complete the paperwork for free.