Understanding what can and can’t be paid with an Administration Order
Typically, a court would include as many debts as they deem appropriate in an Administration Order. If an individual had specific fines or tax arrears, it might be excluded from the order.
Can I get an Administration Order in Scotland?
No. Administration Orders are only in place in England, Wales & Northern Ireland. In Scotland, anyone with debt up to £5,000 would typically have a Debt Arrangement Scheme in place to pay creditors without direct contact.
Does an Administration Order affect your credit rating?
When an Administration Order is made, it has to be registered on the Register of Judgments, Orders and Fines, where it stays for six years. When the debt is paid, the court you’ve gone through will mark the debt as closed. After six years, the record is removed, although some credit companies will have it on their records.
In cases where this previous record limits attempts to get credit, applying for a Certificate of Satisfaction may help.
What alternatives are there to Administration Orders?
If you feel that your debts could be considered “non-priority”, it may be worth applying for a Debt Management Plan. It is non-legally binding and is more flexible on your end.
Get advice on Administration Orders
Talk to advisors at Hillcrest Finance today if you’d like to learn more about Administration Orders.
Phone lines are open every weekday from 8 am on 0141 478 0862. You can also get in touch via WhatsApp.