Administration Orders
Where the debtor is unable to pay the amount of a judgement obtained against him, and alleges his whole indebtedness amounts to a sum not exceeding £5,000, a County Court may make an order providing for the administration of his estate.
Before an administration order is made the court must send to every person whose name the debtor has notified as being a creditor of his, a notice that that person's name has been so notified. So long as an administration order is in force, a creditor whose name has been included in the schedule will not, without the leave of the court, be entitled to present, or join in, a bankruptcy petition against the debtor UNLESS the petition relates to a debt over £1,500, and the notice was received by the creditor within the 28 days preceding the day on which the petition is presented.
Under an administration order, the debtor may be required to pay his debts by instalments, either in full or to such extent as appears to the court in the circumstances of the case to be practicable, and subject to any conditions as to his future earnings or income as the court may think just.
When an administration order is made, no creditor will have any remedy against the debtor in respect of any debt of which the debtor notified the court before the order was made, except with leave of the court.
Where it appears to the court at any time while an administration order is in force that the property of the debtor exceeds in value £50, it must, at the request of any creditor, issue a warrant of execution against the debtor's goods.
Money paid into court under an administration order will be used first to pay the costs of administration and then to pay the debts in accordance with the order. Where the amount received is sufficient to pay:
- each creditor scheduled to the order to the extent provided by the order;
- the costs of the claimant in the action; and
- the costs of the administration;
Commital under debtors act 1869
A County Court may imprison a person defaulting in the payment of a debt or instalment of a debt due to be paid by him under a High Court or County Court maintenance order, or a judgement or order for the payment of certain taxes or contributions e.g. income tax.