If one or more of your creditors has obtained a court judgement against you, the county court could make an administration order telling you to make regular payments to the court, which it will pass on to your creditors.An order will only be issued if you have enough regular income to meet the repayments and your total debts are less than £5,000. Repayments can be as little as £5 per month if that is all you can afford. You can apply for an order to be changed if you have difficulty keeping up the payments.
When you're declared bankrupt, an administrator uses your assets (property and possessions) to pay off your creditors. Bankruptcy is a serious matter - you'll have to give up possessions of value and the interest in your home. However, you might not have to become bankrupt just because you're in debt - you can try to make arrangements with your creditors instead.
Please note that the topics covered in this section are a general guide and should not be taken as any recommendation or solution. It is not a full and authoritative statement of the law. Suitability of any solution will depend on your personal circumstances. Please seek appropriate expert advice before relying on them. The information contained in this section is of a general nature and no assurance of accuracy can be given. The Author does not render legal or insolvency services.They are subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
