Once placed under administration no creditor may collect debt from a debtor under administration by means of any debt collection process - home loans excluded.
The debts you are protected against include all debts, also court judgements irrespective whether incurred before or during the administration.
The relief of administration is available only to debtors when the debt (that is due and payable) does not exceed
The administration order is obtained after a court application when an administrator is appointed to administrate the debtor’s finances.
The court determines what amount of the debtor’s income is required for the debtor and the debtor’s dependants’ cost of living and makes an order that one amount affordable to the debtor is paid to the administrator per month for distribution to the creditors once every three months.
The cost of the application to court as well as the administrator’s fee is paid from the monthly increment paid by the debtor. Once that is paid the balance of the instalment paid is distributed.
The act provides for the functions and duties of the administrator and the three-monthly statements reflecting payments and the balances of debt owing from time to time is filed at court and is available to the debtor free of charge.
This process allows the debtor the freedom to avoid harassment by creditors and to enjoy the protection of the attorney administrator that we will recommend to you should you qualify for the administration order.
The function of administrations is to assist debtors with advice relevant to remedies for over-indebtedness and to assist them with obtaining documentation and placing them with the right, experienced administrators / debt counsellors and to monitor the court process on behalf of the debtor to ensure that the debt resolution remedy is indeed obtained.
The relevant processes are Administration, for debts under R50 000 and such debt that cannot be included under debt review, and Debt Review in the instance of matters where the debt is based on a credit agreement as recognized by the National Credit Act.