An Administration Order is a type of insolvency - similar to Bankruptcy, Individual Voluntary Arrangements and Debt Relief Orders. If you have one, it will remain on your credit report for six years.
If you have a judgment recorded against you, debts not exceeding £5,000, and owe at least two companies, then an Administration Order will be available to you. To get one, you need to make an application via a straightforward form, which sets out your income and suggests how much you can afford to pay. The court will then decide whether to grant you an Administration Order. Following this, you pay the debt until it is repaid in full. The court will take a 10% fee for its trouble.
As with other forms of insolvency, the purpose of an Administration Order is to draw a line under your current financial predicament, whilst also protecting you from your creditors pressing you for repayment. Once the Administration Order is granted, creditors are not allowed to pursue you for debt repayments.
One of the big advantages of an Administration Order is that, unlike bankruptcy, there is no up-front fee to pay. Remember, however, that the Courts take 10% of your total debts as a fee, so it's not entirely free. Also, and, again, unlike bankruptcy, you can't get out of it within 12 months.