This is designed to assist insolvent individuals who do not have any assets or very few, but who have an income from which small levels of debt can be repaid over a period of time. this procedure is only appropriate in smaller cases and It is cheaper than bankruptcy. If a debtor is unable to pay the amount of a judgment, which has been made against him, and his total debt including the judgment does not exceed £5,000 he may request the court to make an administration order.

  The money paid into court under an administration order is required to be used first to satisfy the administration costs (which may not exceed 10 pence in the pound on the total amount of the debts) and then in accordance with the order in satisfaction of the debts. The court decides how much the debtor can pay and over what period of time. Once these sums are paid, even if the amount is less than the sum owed, the debtor is discharged from his debts to the scheduled creditors. However, this does not release the debtor from his obligations to creditors who were not scheduled to the order.