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The Problem

The Problem. Debt repayments is more than income. ?. Garnishee Orders. Loans. Water & Elec. Accounts. +. +. +. +. Accounts: Clothes School Clothes Medical Bills. Arrears School Fees. = R50,000 or less. (not including Bonds and Vehicles).

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The Problem

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  1. RJ PIENAAR

  2. The Problem Debt repayments is more than income ? RJ PIENAAR

  3. Garnishee Orders Loans Water & Elec. Accounts + + + + • Accounts: • Clothes • School Clothes • Medical Bills Arrears School Fees = R50,000 or less (not including Bonds and Vehicles) RJ PIENAAR

  4. The Legal Remedy to Your Debt Problems…? • If your debts: • Garnishee Orders • Accounts at Clothing Shops • Loans: Bank or Cash Loans • Water & Electricity, School fees in arrears • Added together is less than R50,000.00, • There is a legal way to help you with your Debt Problems!! • This excludes • Bond Repayments • Hire-Purchase Accounts • Maintenance Orders • Vehicle Repayments • So what is the Legal Solution for Debtors? RJ PIENAAR

  5. Administration Order is a Court Order (NOT a contract or consolidation loan) The Court will determine what you can afford to pay on your debts, after the deductions on your salary advice and after you have bought all your necessities for you and your dependants. 2. You will then pay the amount left over to the Administrator or Attorney, who will pay all your creditors listed in the administration Until All Debts have been Settled RJ PIENAAR

  6. What is an Administration Order • Only applicable to judgements, non-credit agreement and credit agreement, due and payable to a maximum of R50,000.00 • Consumer cannot incur further debt without disclosure of the administration order to the Credit Provider, otherwise it is a criminal offence • Protection against your creditors and no one may take judgement against you • The Court decides how much you need for basic necessities, and then determines how much must be paid to an administrator • Credit Providers get distributions every month • You have the right to obtain a free of charge statement from your Administrator to monitor the progress RJ PIENAAR

  7. Information to Provide Administrator • ID Book Copy (and wife’s copy if married) • Salary Advice • Accounts & Loan Details • Bond Details • Hire-Purchase agreements • List of furniture and other movable assets you own • ALWAYS BE HONEST !!!!!!!!!!! • Ask the consultant to explain • the costs and the process to you • until you understand clearly ! RJ PIENAAR

  8. Administration Process 1. Application Form is drawn-up by Attorney or Advisor 2. Creditors are given notice of Application and Court Date 3. Court grants the order and appoints an Administrator to take care of your debt problems RJ PIENAAR

  9. General Questions • Can I make new Debts? • YES! As long as you tell the person or institution 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. • You have to obtain a permission letter from your Administrator and give it to the person or institution you are applying for credit. • What if I am 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, as well as your Debt problems. RJ PIENAAR

  10. 3. Will my Name be listed on ITC? • By the time you apply for an 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 had judgements before the Administration Order and it is paid up by the administration, the Magistrate’s Court Act has a procedure to set the judgement aside. RJ PIENAAR

  11. 4. 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 as the 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. If you do have more money to pay your creditors, contact your Administrator for advice • 5. What if I lose my job or my salary changes? • You must advise your Administrator if you lose your job or your salary is reduced. The Administrator will make an application to Court to make the Administration Order instalment less or to suspend the Administration Order for a period until you get new work. RJ PIENAAR

  12. 6. 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. YOU WILL DETERMINE THE PERIOD. • 7. Can I pay more than the monthly instalment, say I get a salary increase? • YES! The more you are able to pay, the quicker the Debt will be paid back. • 8. Can Creditors add more interest and costs to my accounts under Administration? • YES! Interest and costs may be added in accordance with the agreement you signed at the creditor or in accordance with the judgement against you. • May a Creditor take legal action against me while I am under Administration? • NO! Creditors listed in your Administration may not take any further legal action against you to collect money. If a Creditor deducts money from your bank or salary, you must immediately go to your Administrator and advise him/her thereof. RJ PIENAAR

  13. 10. What if I forgotten about an account at the time of my application for Administration? • Immediately go to your Administrator. The Administrator will notify the Creditor of the Administration Order. RJ PIENAAR

  14. RJ PIENAAR

  15. Need more information about Administration Orders? ____________ Refer to the back page of the booklet for our contact details. RJ PIENAAR

  16. CONTACT 1 OF OUR BRANCHES TODAY Potchefstroom Tel: (018) 293-1577 Fax: (018) 293-1776 Klerksdorp Tel: (018) 464-2067 Fax: (018) 462-2605 Rustenburg Tel: (014) 592-6408 Fax: (014) 592-3859 Northam Tel: (014) 784-0288 Fax: (014) 784-0274 Mafikeng Tel: (018) 381-5566 Fax: (018) 381-5567 Website: www.hvdmadmin.co.za

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