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(1)Where a debtor—
(a)is unable to pay forthwith the amount of a judgment obtained against him; and
(b)alleges that his whole indebtedness amounts to a sum not exceeding the county court limit, inclusive of the debt for which the judgment was obtained;
a county court may make an order providing for the adminstration of his estate.
(2)In this Part of this Act—
“administration order” means an order under this section; and
“the appropriate court”, in relation to an administration order, means the court which has the power to make the order.
(3)Before an administration order is made, the appropriate court shall, in accordance with [F1rules of court], send to every person whose name the debtor has notified to the appropriate court as being a creditor of his, a notice that that person’s name has been so notified.
(4)So long as an administration order is in force, a creditor whose name is included in the schedule to the order shall not, without the leave of the appropriate court, be entitled to present, or join in, a bankruptcy petition against the debtor unless—
(a)his name was so notified; and
(b)the debt by virtue of which he presents, or joins in, the petition, exceeds [F2£1500]; and
(c)the notice given under subsection (3) was received by the creditor within 28 days immediately preceding the day on which the petition is presented.
(5)An administration order shall not be invalid by reason only that the total amount of the debts is found at any time to exceed the county court limit, but in that case the court may, if it thinks fit, set aside the order.
(6)An administration order may provide for the payment of the debts of the debtor by instalments or otherwise, and either in full or to such extent as appears practicable to the court under the circumstances of the case, and subject to any conditions as to his future earnings or income which the court may think just.
(7)The Secretary of State may by regulations increase or reduce the sum for the time being specified in subsection (4)(b); but no such increase in the sum so specified shall affect any case in which the bankruptcy petition was presented before the coming into force of the increase.
(8)The power to make regulations under subsection (7) shall be exercisable by statutory instrument; and no such regulations shall be made unless a draft of them has been approved by resolution of each House of Parliament.
F1Words in s. 112 substituted (27.4.1997) by 1997 c. 12, s. 10, Sch. 2 para. 2(2); S.I. 1997/841, art. 3(b), 4(c)
F2Amount substituted by Insolvency Act 1985 (c. 65, SIF 66), s. 220(2)
(1)Where the court is satisfied —:
(a)that it has power to make an administration order with respect to the debtor concerned; but
(b)that an order restricting enforcement would be a more satisfactory way of dealing with the case,
it may make such an order instead of making an administration order.
(2)Where an order restricting enforcement is made, no creditor specified in the order shall have any remedy against the person or property of the debtor in respect of any debt so specified, without the leave of the court.
(3)Subsection (4) applies to any creditor—
(a)who is named in the schedule to an administration order or in an order restricting enforcement; and
(b)who provides the debtor with mains gas, electricity or water for the debtor’s own domestic purposes.
(4)While the order has effect, the creditor may not stop providing the debtor with—:
(a)mains gas, electricity or (as the case may be) water for the debtor’s own domestic purposes; or
(b)any associated service which it provides for its customers,
without leave of the court unless the reason for doing so relates to the non-payment of charges incurred by the debtor after the making of the order or is unconnected with non-payment by him of any charges.
(5)In this section “mains gas” means a supply of gas by a public gas supplier within the meaning of Part I of the Gas Act 1986.
(6)Rules of court may make provision with respect to the period for which any order restricting enforcement is to have effect and for the circumstances in which any such order may be revoked.]
F1Ss. 112A, 112B added (prosp.) by Courts and Legal Services Act 1990 (c. 41, SIF 37), ss. 13(5), 124(3)
(1)Where the court is satisfied—
(a)that it has power to make an administration order with respect to the debtor concerned; and
(b)that the addition of a composition provision would be a more satisfactory way of dealing with the case,
it may make an administration order subject to such a provision.
(2)Where, at any time while an administration order is in force—
(a)the debtor has not discharged the debts to which that order relates; and
(b)the court considers that he is unlikely to be able to discharge them,
the court may add a composition provision to that order.
(3)A composition provision shall specify an amount to which the debtor’s total indebtedness in respect of debts owed to creditors scheduled to the administration order is to be reduced.
(4)The amount of the debt owed to each of the creditors so scheduled shall be reduced in proportion to the reduction in his total indebtedness specified by the composition provision.
(5)Where a composition provision is added to an administration order after the order is made, section 113(a) shall apply as if the addition of the composition provision amounted to the making of a new administration order.]
F1Ss. 112A, 112B added (prosp.) by Courts and Legal Services Act 1990 (c. 41, SIF 37), ss. 13(5), 124(3)
Where an administration order has been made—
(a)notice of the order—
(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1
(ii)shall be posted in the office of the county court for the district in which the debtor resides, and
(iii)shall be sent to every person whose name the debtor has notified to the appropriate court as being a creditor of his or who has proved;
(b)any creditor of the debtor, on proof of his debt before the registrar, shall be entitled to be scheduled as a creditor of the debtor for the amount of his proof;
(c)any creditor may object in the prescribed manner to any debt scheduled, or to the manner in which payment is directed to be made by instalments;
(d)any person who, after the date of the order, becomes a creditor of the debtor shall, on proof of his debt before the registrar, be scheduled as a creditor of the debtor for the amount of his proof, but shall not be entitled to any dividend under the order until the creditors who are scheduled as having been creditors before the date of the order have been paid to the extent provided by the order.
F1S. 113(a)(i) repealed by Administration of Justice Act 1985 (c. 61, SIF 34), s. 67(2), Sch. 8 Pt.II
(1)Subject to sections 115 and 116, when an administration order is made, no creditor shall have any remedy against the person or property of the debtor in respect of any debt—
(a)of which the debtor notified the appropriate court before the administration order was made; or
(b)which has been scheduled to the order,
except with the leave of the appropriate court, and on such terms as that court may impose.
(2)Subject to subsection (3), any county court in which proceedings are pending against the debtor in respect of any debt so notified or scheduled, shall, on receiving notice of the administration order, stay the proceedings, but may allow costs already incurred by the creditor, and such costs may, on application, be added to the debt.
(3)The requirement to stay proceedings shall not operate as a requirement that a county court in which proceedings in bankrupcy against the debtor are pending shall stay those proceedings.
(1)Where it appears to the registrar of the appropriate court at any time while an administration order is in force that property of the debtor exceeds in value [F1the minimum amount], he shall, at the request of any creditor, and without fee, issue execution against the debtor’s goods.
[F2(1A)In subsection (1) above “the minimum amount” means £50 or such other amount as the Lord Chancellor may by order specify instead of that amount or the amount for the time being specified in such an order; and an order under this subsection shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.]
(2)Section 89 applies on an execution under this section as it applies on an execution under Part V.
F1Words substituted by Insolvency Act 1985 (c. 65, SIF 66), s. 220(3)
F2S. 115(1A) inserted by Insolvency Act 1985 (c. 65, SIF 66),s. 220(4)
A landlord or other person to whom any rent is due from a debtor in respect of whom an administration order is made, may at any time, either before or after the date of the order, distrain upon the goods or effects of the debtor for the rent due to him from the debtor, with this limitation, that if the distress for rent is levied after the date of the order, it shall be available only for six months’ rent accrued due prior to the date of the order and shall not be available for rent payable in respect of any period subsequent to the date when the distress was levied, but the landlord or other person to whom the rent may be due from the debtor may prove under the order for the surplus due for which the distress may not have been available.
(1)Money paid into court under an administration order shall be appropriated—
(a)first in satisfaction of the costs of administration (which shall not exceed 10 pence in the pound on the total amount of the debts); and
(b)then in liquidation of debts in accordance with the order.
(2)Where the amount received is sufficient to pay—
(a)each creditor scheduled to the order to the extent provided by the order;
(b)the costs of the plaintiff in the action in respect of which the order was made; and
(c)the cost of the administration,
the order shall be superseded, and the debtor shall be discharged from his debts to the scheduled creditors.
County Courts Act 1984