FAQ’S

WHAT IS AN ADMINISTRATION ORDER?

An Administration Order is granted when a debtor is unable to meet his financial commitments.

The debtors expenses exceed his/hers monthly income. As a result of this the debtor is faced with unpaid bills and creditors hounding him/her for payment. The creditors send out letters of demand and failure to pay will result in the creditor proceeding with legal action.

An application is made to court for the granting of an Administration Order in favour of the debtor. This application is based on the fact that the debtor is unable to service is existing debt.

The Administrator of Durban Administrators is appointed to administer the debtor’s debt. An affordability assessment is done on the debtor to determine the amount payable towards the Administration Order.

 

NOTICE TO CREDITORS

Once an application for an Administration Order is made the creditors are informed immediately by registered post. Thereafter all correspondences from creditors will be directed to the Administrator who is now in charge of the administration of the debt.

The Administrator will liaise directly with the creditors to ascertain updated balances on all accounts and negotiate with creditors on your behalf. With regard to accounts that are handed over, the Administrator will liaise with the collecting agent or representative of the creditor.

Once the Administration Order is granted in court, a copy of the order is sent by registered post to all your creditors on record. The paymaster is informed immediately to stop all garnishee orders against your salary and implement the Administration Order immediately.

 

WHEN ARE CREDITORS PAID?

Once the Administration Order is granted in court an Emolument Attachment Order is granted alongside the Administration Order so as to garnishee the client’s salary/wage for the monthly repayments towards the Administration Order.

The administrator will receive the funds from the employer on a weekly/monthly basis and will distribute the funds to the creditors after all costs have been settled. Distribution of funds to creditors is done on a three monthly basis being February, May, August and November.

After each distribution a schedule of payments is sent to the creditors to update their records.

 

DOCUMENTS REQUIRED FOR AN APPLICATION

The following documents are required on application:

1. Identity document of applicant and spouse in case of joint application

2. Latest payslip

3. Copy of bank statement

4. Statement of account from all creditors: examples, outstanding Edgars account, overdue personal loan account or outstanding school fees statement.

 

ITEMS EXCLUDED FROM THE ORDER

The following accounts are excluded from the Administration Order:

1. Hire purchase, example car and furniture

2. Bond on property

3. Any loans taken against the Provident Fund as surety.

 

ADVANTAGES OF AN ADMINISTRATION ORDER

1. Stopping of garnishee orders against your salary – this gives you more take home pay.

2. One single payment made to the Administrator.

3. Your payment is based on what you can afford.

4. Creditors cannot harass you for payment or take legal action against you.

5. No more threatening letters to deal with from creditors.

 

WHEN IS AN ADMINISTRATION ORDER RESCINDED?

An order is rescinded when :

1.The client’s financial position improves and he finds himself in position whereby he is capable of paying off  his creditors on his own.

In this instance the debtor can via the Administrator  apply to court to have the order rescinded,

or

2.The majority of creditors give consent to rescind if the debtor fails to make monthly payments towards the Administration Order.

Once this is done the creditors can then proceed with legal action against the debtor.

 

WHEN DOES AN ADMINISTRATION ORDER STOP?

An Administration Order is stopped when the debtor has settled all creditors in full.

 

        

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