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Administration Orders
Administration orders refer to the court orders covering the outstanding debts of a person. They refer to methods used for protecting companies from short or medium term financial problems caused by their creditors. The court orders are produced to prevent the creditors from taking any legal action against debtors.
The creditors cannot take any action against debtors for bankruptcy without the consent of the court. The companies, its directors, credit providers or any of them can submit applications to the court for administration orders. The Enterprise act 2002 facilitates the appointment of an administrator to the holder of the charge or a company, its directors etc through a simple procedure.
The administration orders require the debtors to make monthly payments to the court. The court will distribute that money on a pro rata basis amongst creditors. The court will usually take 10 % from the monthly payments made by the debtors as handling fees.
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