How will a Composition Order affect my credit rating?
A Composition Order is a variation to an Administration Order and is listed on the Register of Judgments, Orders and Fines, which is publicly available at Trustonline (a fee of £4 is charged to search this section of the register). It can affect your credit rating.
If you only repay a percentage of your debts back through this order you can get an official record showing that the order has finished by asking the court for a ‘certificate of satisfaction’. This costs £15. However, any county court judgments or other debts can still show on your credit history file and will not be marked as satisfied as they have not been paid back in full
The details of your Composition Order will be visible on your credit history file, with the credit reference agencies, for six years. This could make it harder for you to open a current account or acquire further credit after the order has finished.
Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt. If you need to talk to someone about Composition Orders, please call 0800 043 40 50 to speak to an adviser.