The County Court Rules 1981

ORDER 39ADMINISTRATION ORDERS

Exercise of powers by registrar

1.  Any powers conferred on the court by Part VII of the Act, section 4 of the Attachment of Earnings Act 1971 or this Order may be exercised by the registrar.

Request and list of creditors

2.—(1) A debtor who desires to obtain an administration order under Part VII of the Act shall file a request in that behalf.

(2) Where on his examination under Order 25, rule 3, or otherwise, a debtor furnishes to the court on oath a list of his creditors and the amounts which he owes to them respectively and sufficient particulars of his resources and needs, the court may proceed as if the debtor had filed a request under paragraph (1).

(3) Where a debtor is ordered to furnish a list under section 4(1)(b) of the said Act of 1971, then, unless otherwise directed, the list shall be filed within 14 days after the making of the order.

Verification on oath

3.  The statements in the request mentioned in rule 2(1) and the list mentioned in rule 2(3) shall be verified by the debtor on oath.

Forwarding of certificate of judgment to another court

4.—(1) The court to which a request is made for an administration order may give notice to the debtor to show cause why a certificate of the judgment obtained against him in that court should not be forwarded to another court pursuant to section 148(2) of the Act.

(2) If the court causes such a certificate to be sent to another court, the proper officer of the first-mentioned court shall give notice to the debtor that the certificate has been sent.

Appointment of day for consideration

5.  On the filing of a request or list under rule 2 or the receipt of a certificate of judgment forwarded pursuant to section 148(2) of the Act, the proper officer shall appoint a day for consideration of the question whether an administration order should be made and shall give not less than 14 days' notice thereof to the debtor and to each creditor mentioned in the list furnished by the debtor.

Notice of objection by creditor

6.—(1) Any creditor to whom notice has been given under rule 5 and who objects to any debt included in the list furnished by the debtor shall, not less than 7 days before the day of hearing, give notice of his objection, stating the grounds thereof, to the proper officer, to the debtor and to the creditor to whose debt he objects.

(2) Except with the leave of the court, no creditor may object to a debt unless he has given notice of his objection under paragraph (1).

Procedure on day of hearing

7.  On the day of hearing—

(a)any creditor, whether or not he is mentioned in the list furnished by the debtor, may attend and prove his debt or, subject to rule 6, object to any debt included in that list;

(b)every debt included in that list shall be taken to be proved unless it is objected to by a creditor or disallowed by the court or required by the court to be supported by evidence;

(c)any creditor whose debt is required by the court to be supported by evidence shall prove his debt;

(d)the court may adjourn proof of any debt and, if it does so, may either adjourn consideration of the question whether an administration order should be made or proceed to determine the question, in which case, if an administration order is made, the debt, when proved, shall be added to the debts scheduled to the order;

(e)any creditor whose debt is admitted or proved, and, with the leave of the court, any creditor the proof of whose debt has been adjourned, shall be entitled to be heard and to adduce evidence on the question whether an administration order should be made and, if so, in what terms.

Direction for order to be subject to review

8.—(1) The court may, on making an administration order or at any subsequent time, direct that the order shall be subject to review at such time or at such intervals as the court may specify.

(2) Where the court has directed that an administration order shall be subject to review, the proper officer shall give to the debtor and to every creditor who appeared when the order was made not less than 7 days' notice of any day appointed for such a review.

Service of order

9.  Where an administration order is made, the proper officer shall send a copy to—

(a)the debtor,

(b)every creditor whose name was included in the list furnished by the debtor,

(c)any other creditor who has proved his debt, and

(d)every other court in which, to the knowledge of the registrar, judgment has been obtained against the debtor or proceedings are pending in respect of any debt scheduled to the order.

Subsequent objection by creditor

10.—(1) After an administration order has been made, a creditor who has not received notice under rule 5 and who wishes to object to a debt scheduled to the order, or to the manner in which payment is directed to be made by instalments, shall give notice to the proper officer of his objection and of the grounds thereof.

(2) On receipt of such notice the court shall consider the objection and may—

(a)allow it,

(b)dismiss it, or

(c)adjourn it for hearing on notice being given to such persons and on such terms as to security for costs or otherwise as the court thinks fit.

(3) Without prejudice to the generality of paragraph (2), the court may dismiss an objection if it is not satisfied that the creditor gave notice of it within a reasonable time of his becoming aware of the administration order.

Subsequent proof by creditor

11.—(1) Any creditor whose debt is not scheduled to an administration order, and any person who after the date of the order became a creditor of the debtor, shall, if he wishes to prove his debt, send particulars of his claim to the proper officer, who shall give notice thereof to the debtor and to every creditor whose debt is so scheduled.

(2) If neither the debtor nor any creditor gives notice to the proper officer, within 7 days after receipt of notice under paragraph (1), that he objects to the claim, then, unless it is required by the court to be supported by evidence, the claim shall be taken to be proved.

(3) If the debtor or a creditor gives notice of objection within the said period of 7 days or the court requires the claim to be supported by evidence, the proper officer shall fix a day for consideration of the claim and give notice thereof to the debtor, the creditor by whom the claim was made and the creditor, if any, making the objection, and on the hearing the court may either disallow the claim or allow it in whole or in part.

(4) If a claim is taken to be proved under paragraph (2) or allowed under paragraph (3), the debt shall be added to the schedule to the order and a copy of the order shall then be sent to the creditor by whom the claim was made.

Leave to present bankruptcy petition

12.  An application by a creditor under section 20(3) of the Administration of Justice Act 1965 for leave to present or join in a bankruptcy petition shall be made on notice to the debtor in accordance with Order 13, rule 1, but the court may, if it thinks fit, order that notice be given to any other creditor whose debt is scheduled to the administration order.

Conduct of order

13.—(1) The chief clerk or such other officer of the court as the court making an administration order shall from time to time appoint shall have the conduct of the order and shall take all proper steps to enforce the order or to bring to the attention of the court any matter which may make it desirable to review the order.

(2) Without prejudice to section 151 of the Act, any creditor whose debt is scheduled to the order may, with the leave of the court, take proceedings to enforce the order.

(3) The debtor or, with the leave of the court, any such creditor may apply to the court to review the order.

(4) When on a matter being brought to its attention under paragraph (1) the court so directs or the debtor or a creditor applies for the review of an administration order, rule 8(2) shall apply as if the order were subject to review under that rule.

Review of order

14.—(1) On the review of an administration order the court may—

(a)if satisfied that the debtor is unable from any cause to pay any instalment due under the order, suspend the operation of the order for such time and on such terms as it thinks fit;

(b)if satisfied that there has been a material change in any relevant circumstances since the order was made, vary any provision of the order made by virtue of section 148(4) of the Act;

(c)if satisfied that the debtor has failed without reasonable cause to comply with any provision of the order or that it is otherwise just and expedient to do so, revoke the order, either, forthwith or on failure to comply with any condition specified by the court; or

(d)make an attachment of earnings order to secure the payments required by the administration order or vary or discharge any such attachment of earnings order already made.

(2) The proper officer shall send a copy of any order varying or revoking an administration order to the debtor, to every creditor whose debt is scheduled to the administration order and, if the administration order is revoked, to any other court to which a copy of the administration order was sent pursuant to rule 9.

Reference of question of making a receiving order

15.  Where a court which has no bankruptcy jurisdiction makes an order referring to a court which has such jurisdiction the question whether an administration order should be revoked and a receiving order made under section 11 of the Insolvency Act 1976, the proper officer of the first-mentioned court shall send a copy of the order, together with all the documents in his custody relating to the proceedings, to the proper officer of the court to which the question is referred and shall send notice of the reference to the debtor and to every creditor whose debt is scheduled to the administration order.

Discharge of attachment of earnings order

16.  On the revocation of an administration order any attachment of earnings order made to secure the payments required by the administration order shall be discharged.

Declaration of dividends

17.—(1) The officer having the conduct of an administration order shall from time to time declare dividends and distribute them among the creditors entitled thereto.

(2) When a dividend is declared, notice shall be sent by the officer to each of the said creditors.

Creditors to rank equally

18.  All creditors scheduled under section 149(d) of the Act before an administration order is superseded under section 155 of the Act shall rank equally in proportion to the amount of their debts subject to the priority given by the said paragraph (d) to those scheduled as having been creditors before the date of the order, but no payment made to any creditor by way of dividend or otherwise shall be disturbed by reason of any subsequent proof by any creditor under the said paragraph (d).

Change of debtor's address

19.—(1) A debtor who changes his residence shall forthwith inform the court of his new address.

(2) Where the debtor becomes resident in the district of another court, the court in which the administration order is being conducted may transfer the proceedings to that other court.