FAQ’s – Cancellation of Administration Orders
The following are frequently asked questions about the cancellation of Administration Orders;
Q: If I have not paid up my administration order and your rescind it, what happens to the creditors that I still owe?
A: The rescission and cancellation of an administration order does not mean that you no longer need to pay the debts that were placed under the administration order. Once it is rescinded, you are still legally obliged to pay the creditors you still owe but as opposed to paying the outstanding creditors via an administrator, you can pay the creditors directly by way of payment arrangements. We assist with setting up such payment arrangements once the administration order has been rescinded.
Q: My credit report reflects that I am under administration but I have not been making any payments to my administrator. Can you still help me?
A: Yes. We can still assist you
Q: I have paid up all the debt that was under the administration order and my administrator has given me a section 74U certificate but the administration order still reflects on my credit report. What can I do to remove the administration order from my credit reports?
A: A section 74U certificate is issued by the administrator once the costs of the administration and the listed creditors have been paid in full. However, the credit bureaux do not remove an administration order simply on the basis of the section 74U certificate as a rescission order must still be obtained. Once the administration order is rescinded, a rescission order is obtained from the court and we forward the rescission order to the credit bureaux and ensure that the administration order listing is removed from your credit reports.
Q: How long does an administration order stay on my credit report in the event that it is not rescinded?
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.
Q: My administrator told me that I can only cancel my administrator order once all the debt encompassed in the administration order has been paid in full. Is this true?
A: No. An administration order can be cancelled even where there are still outstanding amounts owing to the creditors encompassed in the court order.