What is Debt?
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase.
How can I be removed from administration?
You can be removed from administration if there is good cause for a rescission of the admin order. The term ‘good cause’ means you can afford to pay the normal contractual instalments on your accounts. You can apply that the Magistrate Court in terms of the Magistrates Act, 1944 (ACT no. 32 of 1944) remove you.
How long does an administration order last in South Africa?
10 years A: In terms of the National Credit Act 34 of 2005, an administration order reflects on one’s credit report for a mandatory period of 10 years.
What happens to debt in administration?
When a company enters administration the control of the company is passed to the appointed administrator (who must be a licensed insolvency practitioner). The administrator’s primary goal is to leverage the company’s assets to repay creditors as quickly and as fully as possible without preference.
What is the difference between administration and debt review?
The process of debt review will ensure that the client’s debt repayment plan is extended and their current interest rates are reduced. Administration is a debt solution that involves the reduction of a client’s monthly instalments.
What Exactly is Administration Order?
Administration order is a voluntary judgment that you as a consumer apply for in court. The administration order falls under Section 74 of the Magistrate Court Act. The purpose of this act is to protect the consumer from judgments being taken against him/her by placing his estate (financial matters) under administration. An administrator is appointed by court to apply on behalf of the consumer and will then administer the consumer’s payment of all the creditors whom the consumer has placed under administration.