Insolvency

You can ask the Enforcement of Judgements Office (EJO) to make an Administration Order if you owe no more than £5,000.

An Administration Order means that you must make weekly or monthly payments from your income to the EJO. The EJO will then share the money among your creditors, in proportion to the amounts you owe them.

Attachment of earnings order

If you don't keep up the payments, the EJO may make an attachment of earnings order. This is sent to your employer, directing them to deduct amounts from your wages and pay them directly to the court. The EJO may also revoke the order.

Advantages of Administration Orders

• you only have to make one monthly payment to the EJO
• the payment will be based on what you can afford
• your creditors cannot act against you without EJO's permission

Disadvantages of Administration Orders

• missing a payment means the arrangement may be cancelled
• orders are for individuals with debts under £5000 and judgement against them
• having an order may make it difficult to get credit

Administration Order fees

The EJO charges for this service. The fee may be up to 10 per cent of your total debt.