In comparison to an Individual Voluntary Arrangement (IVA), an Administration Order is quite different. An IVA can help people with large debt become debt free, usually within five years. For small debt though, an administration order could help.

What is an Administration Order?

An administration order is very different to an IVA. Essentially an administration order is a payment agreement between you and the court. Instead of making payments to your creditors, you make payments to the court on a weekly or monthly basis, and the court distributes the money for you.

You are eligible for an administration order if you have a County Court Judgement (CCJ) ruled against you, your debt is under £5,000, and you have two or more creditors.

In comparison, an IVA is a legally binding agreement between you and your creditors for debt over £15,000.

What happens if I don’t make payments?

If you don’t make payments, your administration order may be withdrawn and your creditors can continue to pursue you for money.

But my debt is over £5,000, should I get an IVA?

If your debt is over £5,000 then another debt solution such as a debt management plan could be more suitable. An IVA may be a better option if your debts are over £15'000. Click to find out how to arrange an IVA and also how to get some confidential advice to help you get out of debt.