DMBM667890 - Enforcement action: county court proceedings: administration orders: payments under an AO
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Where the district judge orders payment by instalments the debtor must pay the instalments into court. »Ê¹ÚÌåÓýapp 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.
Composition cases
»Ê¹ÚÌåÓýapp 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.