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Administration Order - Case Study

John Jones has had 6 county court judgments made against him for £2800 in total. John also owes £2100 to five other creditors.

In relation to each of the six judgments the court has asked John to pay separate monthly sums. When these separate sums are added togaether John cannot pay the amounts ordered by the court.

To solve the problem John fills in the court form to request an administration order under which the court will group all of John's creditors together (both the 6 creditors who have a CCJ and the five who have not taken John to court).

The court then considers John's monthly income and expenditure and then determines that the maximum he can pay each month is the sum of £100.

All of the individual orders against John are then replaced by the one payment ordered to be paid under the administration order.