About UsOur values.
- To provide assistance to over-indebted individuals by recommending and facilitating the correct debt relief mechanism.
- To deal with matters in a confidential, professional and effective manner.
- To offer sound and reliable legal advice.
- To act in the best interest of our debtors and clients.
OUR PRACTICE AREASOur fields of expertise.
An Administration Order is as a "debt relief mechanism" that assists a debtor who finds it difficult to support his family and pay his creditors each month. Our aim is to create a payment plan which allows the debtor to have enough money to support his family and provide peace of mind knowing that Booysen & Co. will deal with his creditors.
It offers protection against legal action from creditors, allowing you to pay a reasonable installment towards your debt while being able to meet your necessary monthly living expenses. This will include mortgage bonds, vehicles and asset finance.
Litigation is the process of attempting to resolve a matter between two or more parties, whether by negotiation, settlement or taking that matter to a court of law so that a judgment can be made.
ADMINISTRATION ORDERS IN TERMS OF SECTION 74 OF THE MAGISTRATES’ COURT ACT 32/1944 (as amended)
An Administration Order is as a "debt relief mechanism" that assists people who find it difficult to support their family and pay their creditors each month. It is not always possible for people to pay their accounts and still have enough money to buy food, pay for transport to work or to pay school fees. People often get caught in the debt trap by taking out more and more loans and opening more accounts to pay for older loans and accounts, or to keep their furniture from being repossessed or to put food on the table for their families. Administration orders are applicable to debtor’s whose debt fall under the maximum threshold of R 50 000.00
Sometimes a person’s debt problems become too much and his salary too small to pay everyone.
If this has happened to you... read further.
WHAT IS AN ADMINISTRATION ORDER?
- • It is a Court Order made by the Magistrate to ensure that you keep enough of your monthly salary to maintain yourself and your family i.e. the people that depend on you.
- • The Magistrate orders a Debtor (you) to repay his debt in monthly instalments which are affordable to you.
- • This means that the Magistrate calculates how much a person can afford to pay back every month on the total debt. He does this by deducting from a person’s salary monthly necessary expenses like food, school fees, budget for clothes, rent, bond and/or furniture shop repayments.
- • The instalment must be paid to the Administrator that is appointed by the Court.
- • The Administrator pays the money into a Trust Account and every month the Administrator pays the person’s creditors until all the Debt has been paid.
- • As soon as all the Debt has been paid, the court issues a Certificate that all debt have been paid in full.
THIS SOUNDS INTERESTING... WHAT SHOULD I DO AND WHERE DO I GO?
Come to Booysen & Co. Inc. and we will assist you in drawing up the Administration Order Application.
We will need the following information:
- (a) Your name (wife’s name if you are married).
- (b) Your ID number (your wife’s ID number).
- (c) Your salary advice (your wife’s salary advice if she’s working).
- (d) All accounts, loans, summons details of yourself (and/or your wife’s).
- (e) If you have a home loan, then we will need the latest bond statement.
- (f) If you have Hire-Purchase Agreements (Furniture accounts) we will need the contract and the account.
- (g) List of all the furniture and vehicles you own.
- We will draw up a document reflecting all the information. This document is the Administration Order Application form and is drawn up according to the law.
- Once the form is completed we will give you the Application form to have it signed in the presence of a Commissioner of Oaths, for example a policeman.
- The Application gives a full account of your income and monthly expenses and also tells the Court and the Creditors how much you can afford to pay each month to the Administrator.
- This Application form is handed to the Court and receives a Case number and a Court date.
- We will then send a copy of the Application to all the creditors you owe money to.
- This way all your creditors will get notice of the Application for Administration and the date it will be heard in Court.
ON THE COURT DATE
As the Application for an Administration is a Legal process and you are asking the Court to help you with your financial problem, you will need to be at the Court on the day the Administration Application is heard by the Magistrate. We will also be at Court to represent you.
The Magistrate may grant your Administration Order or postpone it to a later date, which means you have to be at court again at a later date.
If the Court grants the Administration Order, the Court decides on the instalment and when your creditors receive their money.
BENEFITS OF ADMINISTRATION ORDERS
- Protection against legal action from creditors.
- Protection against furniture and other movable property from being attached and sold in execution.
- No longer having to deal with the threats and harassment of creditors demanding payment.
The Debt Review process is another "debt relief mechanism" that assists people who find it difficult to support their family and pay their creditors each month. Debt Counselling/Review is not limited to the R50,000 threshold. You can also include your mortgage bond and vehicle finance into your total debts. It offers protection against legal action from Credit Providers allowing you to pay a reasonable instalment.
WHAT IS DEBT COUNSELLING?
Effectively, Debt Review is a process where the consumer approaches a Debt Counsellor, who in turn negotiates with your creditor providers with the aim of reducing instalments and interest rates. The end result is to assist the consumer to reduce their over-indebtedness. It offers protection against legal action from Credit Providers allowing you to pay a reasonable instalment. The following documents are required for the initial consultation :
THIS SOUNDS INTERESTING... WHAT IS THE PROCESS FROM HERE?
The following documents will be required:
- (a) Proof of Identity.
- (b) Proof of Marital Status / ANC Contract.
- (c) Proof of income.
- (d) Proof of Residence.
- (e) Statements from all Credit Providers.
THE PROCESS (SUMMARISED)
- Using the above information, Form 16 is generated, which lists your income and expenses, as well as your creditors. This form is used to determine the level of over-indebtedness.
- A proposal containing restructured instalments and interest rates is generated and forms part of you Debt Review Application.
- The Proposal is sent to your creditors.
- Your creditors then respond to the Proposal and provide updated balances and interest rates.
- Once the Proposal is accepted by the consumer and their creditor providers, the client/consumer must start paying the instalments as per the agreed Proposal.
- The Application for Debt Review goes to court to be made an Order of Court.
- The granted court order is submitted to all creditors advising them that an order is in place and that payment will be made in terms of the order.
- From here payment must be made in terms of the court order.
IMPORTANT TO NOTE
- It is important that monthly payments in terms of the order are maintained, as failure to comply could result in termination of the debt review process and legal action being taken against you.
- During the period that you are under Debt Review, your name will be listed with the Credit Bureau as being under debt review and you will not be allowed any further credit facilities.
- Once all creditors are paid in full a clearance certificate will be issued by the Debt Counsellor and your name will be removed from the Credit Bureau.
Our offices are located within 15km of the Durban Magistrate's Court, the Durban High Court and the Verulam Magistrate's court.
Whilst we have a preference for High Court work, we will gladly accept correspondent work.
FAQ'SAll your question answered.
If you can't find any answers please send us a message
Get in Touch with usStill have Questions?
Contact us by filling in the form below.