All Debt Solutions

Administration Order vs IVA

An Administration Order is a court-based debt solution available if you owe less than £5,000 and have at least one County Court judgement (CCJ) against you. The court arranges for you to make affordable payments.

How Administration Order Works

1You must have at least one CCJ and owe less than £5,000 total
2You apply to the county court for an Administration Order
3The court reviews your income and expenditure
4A payment schedule is set based on what you can afford
5The court distributes payments to your creditors
6In some cases, a 'composition order' can write off part of the debt

Administration Order Advantages

Court protection from creditors
Affordable monthly payments
Possible debt write-off with composition order
Single payment to the court
Interest and charges usually frozen

Administration Order Disadvantages

Only available for debts under £5,000
Must have at least one CCJ
Court fees deducted from payments (up to 10%)
Rarely used in practice
Affects credit rating

IVA vs Administration Order - Side by Side

Feature	IVA	Administration Order
Debt threshold	Usually £6,000+	Under £5,000 only
Legal protection	Yes	Yes - court-ordered
Debt write-off	Up to 85%	Possible with composition order
Requirement	No CCJ needed	Must have a CCJ
Availability	Widely available	Rarely used
Fees	Included in payments	Court takes up to 10%

Administration Order May Suit You If...

Those with debts under £5,000 and existing CCJs
People wanting court protection on a small scale

An IVA May Be Better If...

Those with debts over £5,000
People without a CCJ
Anyone with larger or more complex debts

Need Help Deciding?

Get free, confidential advice from a qualified professional to find the best solution for your situation.

Do You Qualify?

* This information is for general guidance only and does not constitute financial advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected.