|
___
___
___
___
|
Administration Orders
Notes for Guidance
Please read these notes carefully. The
notes will help you decide if you qualify for an administration
order. They will also help you to complete the application
(formN92).
What is an administration order?
If you are in financial difficulties
and you are unable to pay your creditors (the people you owe
money to) an administration order may help you.
- An administration order allows
you to pay a sum that you can afford into court each month
to cover all your debts.
- In some circumstances the court
may make an order for you to pay less than the total you
owe (a "composition order"). This may be appropriate
if it is clear that you will not be able to pay your debts
in full in a reasonable period (say three years). You may
ask the court to consider this by using the box in part
C on the application form - but the final decision is for
the court.
- The court will manage your debts
and deal directly with your creditors.
- While the order is in force
none of the creditors named in your application or in the
schedule to the order may try to enforce the debt or try
to make you bankrupt (insolvent) without first asking the
court.
- You will not need to pay a fee
when you make the application. But, if an order is made,
the court will deduct a sum for its costs from each of the
payments you make. This is currently 10 pence in every £1
paid. For example, if you pay £20 each month, £2
will be paid to the court. To put it another way, if your
total payments amount to £2,000 you will pay an additional
sum of £200 to the court during the life of the order.
Do I qualify for an administration order?
To qualify for an administration order:
- You
must have two or more outstanding debts. At least one debt
must be a High Court or county court judgment.
- Your
total debts as stated on the list of creditors must not
be more than £5,000.
If you
satisfy these requirements, you may qualify for an administration
order. If you do not qualify or you think you may qualify
but need further advice, you should contact your local citizens
advice bureau, money advice centre or legal advice centre.
What happens to my application?
- The court will look at your
income and expenditure and consider your offer before fixing
a rate of payment. This will normally be done without the
need for a hearing and you and your creditors will have
16 days in which to write to the court with any objections.
- If there are no objections,
an order will be made in the terms proposed by the court.
You will be told how and when to pay to court.
- If you or any of your creditors
object, or the court has difficulty in setting a rate of
payment, you will be told to come to court for a hearing
before the district judge.
- A creditor may object to their
debt being included in the administration order. If the
court agrees, the creditor will not be able to take action
against you separately to recover the debt without first
asking the court.
- If you are employed, the court
may order your employer to send deductions direct from your
earnings to the court. This is called an attachment of earnings
order. If you object to this, you must
tick the box in part C. You must give good reasons for objecting.
The court may make a suspended attachment of earnings order.
This means that as long as you regularly pay the administration
order, your employer will not be asked to make deductions
from your earnings. But if you do not keep up payments,
the court may send the order to your employer without telling
you.
- If an administration order is
made, it will be registered in the Register of County Court
Judgments. This will make it difficult for you to get credit.
When the order is paid in full, you can ask the court to
mark the entry in the Register as satisfied and for a certificate
proving payment. You will need to pay a fee for this.
- County court judgments included
in the list of creditors may be registered separately. Court
staff will be able to tell you how to have these entries
on the Register marked satisfied.
What happens if I
am unable to keep up the payments?
- If you cannot keep up payments
you must contact the court immediately.
The court may be able to help you. It is important that
you do not get deeper into debt.
- If you do not pay once the order
has been made, the court may send the bailiffs to take and
sell your possessions, or make an attachment of earnings
order to enforce payment. Alternatively, it may revoke (cancel)
the order and your creditors will be able to take action
against you separately to recover their debts.
How do I complete the application form?
Please read these guidance notes carefully
before you complete the application form for an administration
order (form N92).
- Complete the application form
and details of your income (section 6) and expenditure (section
7) as fully as possible. See the examples and notes below
to help you complete the form. The court will use this information
to fix the amount you will be expected to pay.
- It will help the court if you
give all sums for income and expenditure as either monthly
or weekly - try not to mix the two.
Completing Section 6 - Income
- Complete details of all your
income (section 6) as fully as possible.
- If you receive income from a
second job or you regularly earn overtime you should show
this in the 'other income' box.
- If you receive Income Support
you should enter the figure you actually receive after any
deductions are made.
- If you receive any other benefits
(eg disability benefit) you should say so and show how much
you receive in 'the other benefits' box.
- If your partner contributes
to or pays any of the expenses in box 7, you must include
the amount they pay in box 6.
- If you are in arrears with national
insurance or income tax
Example 1
Statement of Means - Income and Expenditure
Important: It will help the court if
you give all sums for income and expenditure as either monthly
or weekly figures. Try not to mix the two.
6. Income
| |
specify weekly/monthly |
|
specify weekly/monthly |
| |
|
|
|
| my usual take home pay |
£905 per month |
sub total brought forward |
£1105 per month |
| |
|
|
|
| my partner contributes
to the expenses in section 7 |
£100 per month |
income support (see
notes for guidance) |
£ - |
| |
|
|
|
| others living in my
home give me |
£ - |
child benefit(s) |
£41 per month |
| |
|
other state bebnefirs
(specify) |
|
| my pension(s) |
£ - |
none |
£ - |
| |
|
|
£ - |
|
other income (give details)
overtime
|
£100
per month |
|
|
| |
|
|
|
| Sub total |
£1105 per month |
Total |
£1146 per month |
Completing Section 7 - Expenditure
You should list all the money you regularly
pay out each month in regular expenses and arrears (section
7). List all the regular payments you make in column (a).
If you are in arrears with any of these
items, eg unpaid rent, you should list the total amount of
the arrears you owe in column (b). Full details must also
be given in the list of creditors (part B).
If you are paying the arrears off by
instalments, for example at a rate agreed with the creditor
or under a court order, you should say how much you pay each
week or month in column (c).
Do not include this amount in column (a).
If any amounts are deducted directly
from your income (eg an attachment of earnings order for council
tax or maintenance) or your benefit (eg refund of social fund
loan or overpaid benefit) you should not include these sums
anywhere in section 7. You must include them in the schedule
and say that they are deducted direct from your income.
Council tax has now replaced community
charge. You should enter the amount you pay regularly for
council tax in column (a), and any arrears or arrears of community
charge under column (b) and (c).
If you include travelling expenses in
the regular expenses column you should only include expenses
for bus or train fares or petrol. You should not include expenses
for car insurance or road fund licence.
If you make regular payments for items
that are not listed, say what they are in the boxes marked
'others'. Examples might be repayment of a loan, hire purchase
instalments or regular credit card payments.
Example 2
7. Regular expenses and arrears
| |
(a) Regular
payments - enter the amount you usually spend or must
pay for each item, weekly or monthly (please complete
each entry: write n/a if not applicable. |
(b) Total
arrears - if you are in arrears with any of the items
items in regular payments column (a), enter the total
arrears owed in column (b). Full details should be given
in the list of creditors. |
(c) Regular
arrears payments - if you are paying off the arrears shown
in column (b) show how much you are paying weekly or monthly
in column (c). Do not include these amounts as regular
payments in column (a). |
| |
weekly/monthly
|
|
weekly/monthly
|
| rent |
£500
per month |
£ |
£ |
| mortgage / home loan |
£ n/a |
£ |
£ |
| second mortgage
/ secured loan |
£
n/a |
£ |
£ |
| life insurance
/ endowment |
£20
per month |
£ |
£ |
| house contents insurance |
£60 per month |
£ |
£ |
| council tax / community
charge arrears |
£40 per month |
£ |
£ |
| maintenance
/ child support |
£200
per month |
£600 |
£40
per month |
| water /
sewerage charges |
£16
per month |
£ |
£ |
| ground rent
/ service charge |
£
n/a |
£ |
£ |
| gas (or
other fuel eg coal, oil) |
£30
gas per month |
£ |
£ |
| electricity |
£15
per month |
£150 |
£10
per month |
| tv rental
/ licence |
£6
per month |
£ |
£ |
| magistrates'court
fine (s) |
£
n/a |
£ |
£ |
| dss social fund loan
/ overpaid benefit |
£ n/a |
£ |
£ |
| telephone (line, phone
rental, essential calls only) |
£10 per month |
£ |
£ |
| child care |
£
n/a |
£ |
£ |
| food and household essentials |
£150 per month |
£ |
£ |
| clothing |
£5
per month |
£ |
£ |
| laundry |
£
n/a |
£ |
£ |
| travelling expenses
(essential eg work, school) |
£15 per month |
£ |
£ |
| school meals
/ meals at work |
£
n/a |
£ |
£ |
| prescriptions
/ dentists / optician |
£
n/a |
£ |
£ |
| |
|
|
|
| Others eg hire purchase |
|
|
|
| |
|
|
|
| bank overdraft |
£5
per month |
£200 |
£ |
| h.p. (3 piece suite) |
£10 per month |
£50 |
£5 per month |
| visa card |
£50
per month |
£500 |
£ |
| |
7a total expenses
|
7b total arrears
|
|
| |
£1132
per month |
£1500 |
|
Completing Part B - List of Creditors
- You must list all your debts in
the list of creditors (you may be required to provide
proof of each debt) and say what each debt is for (see
the example below).
- At least one debt must be a High
Court or county court judgment debt. Remember to give
the name of the court and case numbers for any county
court or High Court debts (see example below). You must
also provide a copy of the judgment or order, summons
or writ.
Example 3
| Part B: list of creditors |
|
Applicants name:
John Slope
|
Application
number:
for court use only |
|
| Name of creditor, if
known, and address to which payment should be sent. Give
reference/account number. If judgment debt, also state
court and case number. |
If someone else is jointly
responsible for part of this debt give details (eg guarantor,
joint account etc). |
Amount Outstanding |
|
1. Furniture for You Ltd (3 piece suite)
Ref: 736527161PH
Pilwood House
Barchester
Barsetshire
Case No: 9210144
Barchester County Court
|
|
£362.97
|
2. Grantley
Bank Plc (overdraft)
a/c: 217/1894/202
30 High Street
Barchester
Barsetshire
|
Mrs O Slope
(joint account)
|
£200.00
|
3. Midlays
Visa Card
a/c: 3991/4320/6191/7723
29 Old View
Barchester
Barsetshire
|
|
£500.00
|
4. B Bonds
Sportswear (bounced cheque)
2 High Street
Barchester
Barsetshire
Payable to:
E M Wentworth (solicitor)
Ref: EMW/DTM
15 High Street
Barchester
Barsetshire
|
|
£27.34
|
Should I make an offer of payment?
- You may wish to suggest a
rate at which you could pay back your debts (see part
C of the application form). You do not have to make an
offer but, if you do, it should be one you can afford
to pay (however small).
- If you are employed, the
court may ask your employer to send deductions direct
from your earnings to the court. This is called an attachment
of earnings order. If you object to this, you must tick
the box in part C and say why you object. If you do
not give good reasons, the court will consider making
an order.
What should I do with the completed application
form?
- Take the unsigned completed application
form to your local county court. You will be asked to
sign the form in front of a court officer and you will
have to swear on oath that the information given in your
application is true. If you can, bring any bills, statements
and invoices to suport the details of your income and
expenditure.
- If you need help to complete the
application the application form (N92) you should ask
at your local county court office, citizens advice bureau,
money advice centre or legal advice centre.
- Take a photocopy of the completed
application - you may need to refer to it.
|
|
