1. Will my name appear in the newspaper?

NO. An Administration Order is not a Sequestration. Only your creditors get notice of your application.


  1. Will I have to sell all my furniture and motorcar?

NO. An Administration Order is not a Sequestration. Only if you have a luxury TV, Hi-Fi or your car is a Porsche or new fully paid BMW, or something as luxurious as that. You need to economize on your standard of living in order to regain control of your finances. Administration Order actually protect your movable property as NO creditor can take any further court actions against you to settle your debts, as long as you are under Administration.


  1. Will I lose my Hire-Purchases or House that has a Bond on it?

NO. If the furniture you bought are essential or you have already paid a large amount on it, the Court will leave enough money for you each month to pay the account. The Court will also not tell you to sell your house. However if you have no housing subsidy and cheaper housing is available than the present bond instalment, the Court can do so.


  1. Can I make new Debts?

YES. As long as you tell the person or institution where you are applying for credit that you are under Administration. If you do not tell them about the Administration, it is a crime and you can go to jail. It is better to get a permission letter from your Administrator and give it to the person or institution you are applying for credit.


  1. What if I’m married?

People marry in different ways. If you have no marriage contract registered by an Attorney, you are married in community of property. If you have a traditional marriage, you are also married in community of property.

This means that everything that is yours is also your spouse’s. Every Debt is also your spouse’s.


  1. Will my name be listed on ITC?

By the time you apply for Administration Order, you may already be behind on your accounts or have already been garnished by a Creditor. So you may already appear on ITC.

Once you have finished paying your Administration the Court issues a certificate stating that all Debts have been settled. This certificate can be sent to ITC who will amend your record showing all debts have been settled. If you have been garnished the Magistrate Court Act has a procedure to set the judgement aside.


  1. Can I pay more than the monthly/weekly instalment, say I get a salary increase?

YES. The more you are able to pay the quicker the Debt will be paid back.


  1. Can I still pay my own accounts?

NO. All accounts and debts listed in the Administration Order will be paid by the Administrator to the Creditors, as the Law says that NO creditor may receive money directly from a person under Administration. By paying one Creditor or two outside the Administration makes the Creditor a preferential Creditor or a Creditor is getting his/her money before any of the other Creditors. Creditors included in the Administration Order must be managed on the same level and in the same manner. No one must stand first in line.


  1. Can Creditors take legal action against me while I am under Administration?

NO. The Law does not allow a Creditor listed in your Administration to hand you over to an Attorney, or to take any further legal action against you to collect money or furniture. If a Creditor deducts money from your bank account or salary, you must IMMEDIATELY go to your Administrator and advise him or her.


  1. What if I lose my work or my salary changes?

You must advise your Administrator if you lose your work, or if your salary has been reduced. The Administrator will make the instalment less or to suspend the Administration Order for a period until you get a new work.


  1. How long does an Administration Order take?

The period the Administration Order will take depends on the total Debt amount which needs to be paid back and the amount you can afford to pay each month.

The more you are able to pay each month the sooner you will finish.


  1. Does the Administration Order pay all my Debt immediately?

NO. The Debts are paid every 2nd month from the instalment you have paid to the Administrator. Administration Orders are NOT consolidation loans as you do not borrow money from the Administrator to pay Debts and you do not pay the Administrator back on a loan made with him or her.


  1. Will the Creditors continue to send letters to me or bother me?

YES, some will. You must report the Creditors who are bothering you to the Administrator and report all accounts send to you. Do NOT sign any documentation a Creditor gives you to sign. Sign only documents in front of your Administrator.


  1. What if I have forgotten about an Account at the time of my Application for Administration?

Immediately go to you Administrator. The Administrator will notify the Creditors of the Administration Order.


  1. Can Creditors add more interest and cost to my accounts under Administration?

YES. Only under certain conditions. Example: If the Creditor has a judgement against you before your Administration Order. They have to prove the cost and the interest to the Court before it gets added to the Administration Debt, and it must be in accordance with all laws on loans.