Cost of an administration order

An administration order is a formal and legally-binding agreement between you and your creditors to pay back your debts over a period of time.

This page tells you how much it costs to have an administration order.

Do you have to pay for an administration order?

You don't have to pay a fee to apply for an administration order. If an administration order is made then the court will take 10 per cent of the amount paid under the order to cover it’s costs.

For example, if you are ordered to pay a total of £3,000 under your administration order the court will deduct £300 and your creditors will receive £2,700.

When you make your monthly payments to the court, the court will deduct 10% from each payment to cover their costs. 10% amounts to 10p in every pound.

If the application is unsuccessful and an administration order isn't made you won't have to pay any fees or costs, even if there has been a hearing.

How and when do you have to pay?

Once the administration order is set up, you'll make one payment to the court each month. You have to pay the court with cash, cheque or postal order. You can hand this to the court in person, or send it in the post.

Sometimes, the court makes an attachment of earnings order. This can only be done if you have a job. It means the monthly amounts will come directly from your employer before it reaches your pay packet. If you don't want your employer to know about the administration order, you can ask the court not to make an attachment of earnings order when you make your application. Alternatively, you might want to ask them to make such an order. It could be easier for you than having to get the payment to the court yourself.

Next steps

• Is an administration order right for you?