Enforcement Administration Orders - information ????

[Amethyst]

Does any one have experience of or know the current position on these orders.

There are proposals to increase the maximum limit of debt to £15,000 (Registry Trust - Good Judgments Dec 2008 - Legal Beagles) so they may become more useful in the near future, but we don't know that much about them.

They seem to be a stave off bankruptcy, give you a break to get back on your feet debt management scheme enforced by the courts.

Tribunal, Courts and Enforcement Act 2007 - Tribunals, Courts and Enforcement Act 2007 (c. 15)

http://enforcementrestrictionorder.o...ads/cp0108.pdf

http://www.moneyadvicetrust.org/imag...ponse%20v3.pdf

November 2008 - Hansard

Debts

John Battle: To ask the Secretary of State for Justice what plans he has to review the eligibility criteria by which indebted individuals can apply for a debt enforcement restriction order; and if he will make a statement. [233107]
Bridget Prentice: The enforcement restriction order (ERO) is set out in Chapter 2 of Part 5 of the Tribunals Courts and Enforcement Act 2007. It is currently expected that it will be introduced in 2010. It was developed following extensive consultation with the advice and credit sectors. It is intended specifically to support only those debtors who encounter unforeseen short-term difficulties from which they are likely to recover in a relatively short period. Other options, such as the reformed Administration Order (AO), which is contained in Chapter 1 of Part 5 of the Tribunals, Courts and Enforcement Act 2007 exist for those with more long-term problems. There are no plans to review the underpinning eligibility criteria at this time.
However, earlier this year Her Majesty's Court Service consulted on certain aspects of the administration and enforcement restriction order schemes, including the types of debts that should be able to be protected. The response to the consultation paper: ‘Administration and Enforcement Restriction Orders: Setting the Parameters’, will be issued shortly.

[Amethyst]

Re: Enforcement Administration Orders - information ????

also we need to look properly at time orders ? any thoughts ?

[Amethyst]

Re: Enforcement Administration Orders - information ????

Administration Orders

What is an Administration Order?
An Administration Order is a court order which covers your outstanding debts. Under it you would make a monthly payment to the court, who will then distribute that money on a pro rata basis amongst your creditors.
For ‘administering’ the order, the court will take 10% of your payment as handling fees to cover their costs, which they will deduct directly from your monthly payments.
Whilst the order is in place no creditor included in the order, without the leave of the court, will be allowed to take action against you. In addition, debt collection procedures and letters against you will be stopped.

Who can apply?
To be able to apply you must have:

• At least one County Court (or High Court) Judgement issued against;
  
• At least 2 creditors; and
• Your total debt must be less than £5,000

Applying
This is done by completing form N92 which is obtainable from your local court office.
On the form you must list all your debts, which must not exceed £5,000. Administration orders are only given to individuals, where there are debts with joint and several liability, you should include the whole debt. Even if finances are shared, couples cannot apply jointly and must make separate applications.
Where a couple each make individual applications for an order at the same time and their is a joint debt, it may be acceptable to divide the debt equally between the two applications.
There is no application fee. The only charges levied byt he court will the 10p in every £1 which they deduct to cover their admin costs.
For employed applicants an Attachment of Earnings Order will be made, unless they specifically request otherwise on form N92. Since many debtors do not want their employers to know of the situation, most debtors prefer not to have an Attachment of Earnings Order.

Payments
If you do not maintain your payments, the court can revoke the order. Your creditors would then be entitled to pursue you for the full amount owed to them.
Should you feel that you cannot afford to pay the amount stipulated in the order, perhaps because of a change in circumstances, you can ask the court to review the order and reduce the payments.

Completion
Once you have paid your debt off under the order, you can obtain a "Certificate of Satisfaction" from the court. You will have to pay a £10 fee for this certificate.

[Amethyst]

Re: Enforcement Administration Orders - information ????

http://www.hmcourts-service.gov.uk/c...s/n92_0406.pdf




http://www.hmcourts-service.gov.uk/c.../n270_0499.pdf



Page 11 of 12
What if I already have other judgments or debts to pay?

If you have other judgments or debts to pay and find it difficult to organise your payments, you can ask the court for an 'administration order'. To get an administration order, you must have at least one judgment and your total debts must not be more than £5000.

If the court allows you to have an administration order you can pay all your debts (including those where there is not a judgment against you) by making one payment to the court each week or each month. While you are paying an administration order, the people you owe money to (your creditors) can't take any further action against you to get their money without asking the court first. Also you will not have to pay any interest.

You will have to pay a fee for an administration order, but this will be added to the money you already owe. You do not have to pay the whole fee in one go.

When the court makes an administration order, it enters the order on the Register of County Court Judgments. This will make it difficult for you to get credit until you have paid all your debts.

You can get more information about an administration order from any county court office or your local advice centre. You will need Form N270 (Notes for guidance - completing an application for an administration order).

If the court makes an administration order, you must keep up with the payments or the order may be cancelled ('revoked'). Ask the court what to do if you can't pay.

Remember:

* If you have a county court judgment against you, you must do something, even if you cannot afford the amount you have been told to pay.
* If you do nothing, the claimant will probably take more steps to make you pay. This will cost you more money, time and inconvenience.

[Paule]

Re: Enforcement Administration Orders - information ????

It would be cheaper for people to go to Payplan or CCCS in my opinion.
As there isnt a low limit and they dont charge you either.

I would also say that the majority of poeple who do look into this type of thing usually only do so as a last resort when the monies owed are a lot higher than £5K

[Paule]

Re: Enforcement Administration Orders - information ????

It would be cheaper for people to go to Payplan or CCCS in my opinion.
As there isnt a low limit and they dont charge you either.

I would also say that the majority of poeple who do look into this type of thing usually only do so as a last resort when the monies owed are a lot higher than £5K

[Amethyst]

Re: Enforcement Administration Orders - information ????

Yes it is cheaper to payplan or cccs however they allow creditors to continue with court action and bailiffs etc.

Also they are looking at increasing the limit to £15k which probably also is too low to help serious cases. Be interesting to look at the effect on credit rating etc.

ahhh

If an administration order is made, it will be registered
in the Register of County Court Judgments. This will
make it difficult for you to get credit. When the order
is paid in full, you can ask the court to mark the entry
in the register as satisfied and for a certificate proving
payment. You will need to pay a fee for this.