Can You Have an Administration Order Rescinded?

Administration orders limit your control over your finances, rendering you unable to manage your own debts. You might experience stricter budgetary constraints, limiting your ability to manage unexpected expenses. It could stay on your credit report for years after completion, despite all your debts being repaid. You might consider rescinding your administration order – but how would this work, what criteria would you have to meet, and what would you need for the rescission to take place?

This post discusses what you need to have an administration order rescinded, how administration orders work, and how Credit Rehab can be of assistance.

Let’s dive in!

How Do Administration Orders Work?

When you have an administration order set against you, the Magistrate’s court sets out the amounts that you must pay to your creditors. Your administrator puts together an affordable repayment plan and your estate – your assets – are administrated to pay your debts. Administration orders are only applicable to people who owe R50,000 or less in debt and can’t afford to make repayments.

To apply for an administration order, you must submit an affidavit and statement of your financial affairs. The Magistrate’s court will assess this, and then decide whether you’re eligible for administration. If approved, an administrator will be appointed to inform your creditors and employer of the order, list the amounts owed to each creditor, and collect payments and distribute them to your creditors at least once every three months.

How Can You Get an Administration Order Rescinded?

To rescind an administration order, you’ll have to demonstrate “good cause” to the Magistrate’s court.

Criteria to Have an Administration Order Rescinded

Some examples of “good cause” include:

• A change in financial circumstances, such as increased income or decreased debt.
• Your creditors are not being paid as often as they could be. For instance, if you could make payments monthly, but your administrator only makes payments once every three months.
• Your administrator is not performing their duties or their charges are in dispute.

An administration order can also be rescinded after all your debts have been paid.

How to Get an Administration Order Rescinded After It’s Paid

Once you’ve paid back all your creditors, you must apply for a 74U certificate. This states that your debts have been paid off, which you can send to the bureaus. They’ll update your administration order status to paid.

To completely remove the order from your credit profile, your administrator must apply for a rescission order in terms of section 74Q of the Magistrates Act. You can submit this to the bureaus, who will remove the listing from your credit profile. This is part of the credit clearance process.

How to Get an Administration Order Rescinded If It’s Unpaid

You can request that an administration order be rescinded on the grounds of “good cause” mentioned above; however, this doesn’t mean you can stop paying your creditors.

Let Credit Rehab Be of Assistance

Credit Rehab can help you prepare the documents needed for rescission and prove good cause, whether that’s a change in your financial circumstances or proof your administrator isn’t adequately performing their duties or paying late.

Credit Rehab’s attorneys are experts in rescinding administration orders and credit clearance. Let us help you – contact us.