An Administration Order is  a debt settlement option for people who only owe less than R50,000, not including vehicles or property, who do not want to sequestrate.  The process involves a Magistrate's Court application in which you apply to be placed under administration in terms of which a monthly instalment would be paid to an Administrator, after provision has been made to cover your living expenses, bond repayment, and vehicle instalment, if you have one.

The Administrator will then distribute the collected amounts proportionately among your creditors on a 3-month cycle, after certain administrative costs have been deduced.  However, it should be noted that an administration order does not stop interest from running on outstanding debt and if you are married in community of property, the application must be supported by your spouse and include all their details as well.

The Administration Order also temporarily protects you from your creditors who may not proceed with legal steps against you, except in limited circumstances, for example, a mortgage bond due. Upon full payment of the debt, the Administrator will lodge a clearance certificate stating that the costs of administration and the creditors have been paid in full, with the Clerk of the Magistrate’s Court, and a copy of the clearance certificate will be sent to your creditors and employer.

Copyright © 2023 Rohan Lamprecht. Disclaimer: The information in this article is of a general nature for educational purposes only, relevant to the publishing date. Any opinions expressed are solely those of the author and do not necessarily reflect the views or opinions of Grobler Malopi Inc. The content is not intended to constitute professional or legal advice, and you are encouraged to call and consult with our attorneys to discuss your specific situation before making any decisions. Grobler Malope Inc - 087 057 1790 -

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