Creditors will not even be allowed to contact you telephonically to request payment of your accounts. If they do, you simply refer them to your Administrator (us) and we will deal with them from that point onwards. This is the most powerful Order there is for debt. It is not a quick solution, but it brings peace of mind.
However, the law does not allow Hire Purchases (i.e.: motor vehicle finance and/or furniture accounts) and home loans to be included in under the Administration Order, but it does make provision for the payments of such accounts. You will therefore not lose your house or your vehicle, provided of course that you keep the monthly installments up to date. After all, provision will have been made for these payments at the time of the application, as mentioned above.
All your other debts and accounts, i.e. Cash Loans, Personal Loans, Credit Cards, Overdrafts, Pharmacy Accounts, Doctors Accounts, School Fees, SARS, etc., must be included in the Administration. Creditors will not even be allowed to contact you telephonically to request payment of your accounts. If they do, you simply refer them to your Administrator (us) and we will deal with them from that point onwards. This is the most powerful Order there is for debt. It is not a quick solution, but it brings peace of mind. Creditors will not even be allowed to contact you telephonically to request payment of your accounts. If they do, you simply refer them to your Administrator (us) and we will deal with them from that point onwards. This is the most powerful Order there is for debt. It is not a quick solution, but it brings peace of mind.
However, the law does not allow Hire Purchases (i.e.: motor vehicle finance and/or furniture accounts) and home loans to be included in under the Administration Order, but it does make provision for the payments of such accounts. You will therefore not lose your house or your vehicle, provided of course that you keep the monthly installments up to date. After all, provision will have been made for these payments at the time of the application, as mentioned above.
All your other debts and accounts, i.e. Cash Loans, Personal Loans, Credit Cards, Overdrafts, Pharmacy Accounts, Doctors Accounts, School Fees, SARS, etc., must be included in the Administration.
Your Administrator will restructure your monthly budget in order to make provision for an affordable monthly installment. The monthly installment will be paid over to your Administrator by means of a Garnishee Order. Your Administrator will then divide the monthly installment amongst your creditors by way of pro rata distribution in terms of the Administration Order.
If you manage your budget strictly according to our calculations during the period of your Administration, you will have more funds available for your daily needs and a lot less stress. Furthermore, the legal costs for the administration application will form part of your administration itself and therefore no deposit will be payable for our services.
Do note that your creditors are allowed to charge interest as initially agreed to by yourself and the creditor. This means that the interest will not stop just because your estate is being placed under administration. However, no creditor is allowed to charge more interest than an amount equal to the original capital amount (in duplum rule).
The consequence of going under administration is that you will be black listed at all the credit bureaus and that you are not allowed to open any new accounts. As soon as your Administration is paid in full, your Administrator will issue a Certificate which is then forwarded to ITC to clear your name on the Credit Bureaus.
After this, it usually takes anything from 3 weeks up to 6 months for your to be credit worthy again.
