Enforcement action: county court proceedings: administration orders: payments under an AO
Where the district judge orders payment by instalments the debtor must pay the instalments into court. The amount an individual creditor receives is proportionate to the total amount owing by the debtor.
From time to time the court officer conducting the AO will pay creditors a dividend (you will be sent this under cover of a notice on form N377). A dividend is the money paid to all the creditors from the payments made under an administration order.
When you receive a dividend
- allocate the payment first to enforcement fees
- B/F the papers to await the next dividend.
You should telephone the court office if you do not receive a dividend at the anticipated time.
The AO may provide for payment of so much in the £ only. This is called a ‘composition’.
When you receive the ‘final’ dividend in a composition case you should remit the unpaid scheduled arrears under Type 2.
However, where the case was referred back to you by EIS you should
- notify them that the composition has been satisfied and
- return the papers to that office.