If you are unable to repay your debts and have no assets to sell, you can apply to a court to be put under administration. This means that a court will appoint someone (an administrator) to run your financial affairs until your debts are paid.

The administrator will receive your wages/salary, give you a basic amount to live on, and then use the rest to pay back your creditors. You will be charged up to 12.5% of the amount paid to your creditors.

Once you are under administration you will not be able to apply for credit for the next 10 years and your creditors will only be paid a portion of your deductions once every three months.

If you are already under administration and you want to recind (cancel) it, you have to apply to the same court where the administration order was granted. If the administrator co-operates, a 74Q document is issued to you. You submit this document to the credit bureaus for removal of the notice.

If you get no co-operation from the administrator, you need to take it upon yourself to rescind the administration order and remove it from your records. To do so, you need to compile an affidavit in which you have to convince the magistrate that you have good reason to set aside the administration order and still maintain the payments to the creditors.

The most popular and acceptable reason would be to show that your financial position has since improved. Drafting the affidavit can be a complex process, so you might want to consider asking a professional to assist you. The next step will be to serve the affidavit to the clerk of the court (who will give you a court date), the administrator and your creditors. You then argue your case in front of a magistrate and if successful, the administration order will be removed from your credit record within 20 days.

(See: Being under Administration)