Administration orders and the register
Known as a ‘mini-bankruptcy’, an Administration Order empowers the court to take over administration of the defendant’s debts, whilst an agreed regular amount is repaid.
Registration of Administration Orders
Registry Trust Ltd (RTL) is contracted to the Ministry of Justice to maintain the statutory public Register of Judgments, Orders and Fines for England & Wales, one section of which includes details of Administration Orders.
Any debtor, against whom at least one county court judgment is registered, can make application to the court for an Administration Order.
If granted, this provides protection from further action by creditors in respect of any debts listed under the Order.
Creditors not included in the Order cannot pursue their debts separately through the courts – if they try, these debts are automatically added to the Administration Order.
What’s on the register
All courts are required to provide details of Administration Orders against individuals for inclusion in the public register, which is kept by Registry Trust Ltd (RTL) on behalf of the Ministry of Justice.
The information on the register includes:
- Court name and Order number
- Name and address of defendant
- Total amount payable
- Date of Order
- Date of Varied Order, Satisfaction or Revocation
When the register changes
The information on the register is updated when RTL are advised by the court.
Varying an administration order
This occurs when the amount of the debt agreed under the original Order has been changed by the addition of new creditors or when a composition order (debt reduced to % of £ owed) is made.
The courts must notify RTL and the Varied Order replaces the original one.
Satisfying an administration order
When an Administration Order has been paid in full, the Court must notify RTL so that the Register can be amended. The defendant can also apply to the court for a certificate of satisfaction, available for a court fee of £15 (cheque/postal order payable to HMCTS).
Any county court judgment(s) included in the Order can only be marked as satisfied if the judgment is paid in full and, if required, a separate fee must be paid for any certificate of satisfaction.
Revoking an administration order
If the defendant does not make the regular payment ordered by the court, the arrangement under the Administration Order may be withdrawn and the Order is then revoked.
This releases creditors from the restrictions imposed and enables them to take further legal action – either obtaining a judgment where one does not already exist or making a bankruptcy application.
The court must notify RTL of the revocation so that the Register can be amended.
When an Administration Order is set aside by the court, or repaid within one calendar month, RTL must be notified so that the item can be removed from the Register.
If full payment is made within one month, the defendant can also apply to the court for a Certificate of Cancellation, available for a court fee of £15 (cheque/postal order payable to HMCTS).
The cancellation/setting aside of an Administration Order does not affect any county court judgment(s) included in that Order.
Suspending an administration order
This occurs when the defendant is unable to continue payments for a period and where the reason for this is acceptable to the court. Registry Trust Ltd is not notified.
Details of Administration Orders and any subsequent amendments are passed to the credit reference agencies for inclusion in their records, to be notified to lenders on receipt of a credit application, as an aid to responsible lending.
Corporate Administration Orders
Under the Insolvency Act 1986, an Administration Order may also be made against a limited company. Details of these administration Orders are notified to Companies House and are not held on this Register.