Administration Orders Quick law Guides

REMOVE FRO administration order
Administration order

Administration Orders & Credit reports


Q: What is an administration order?


A: An administration  ordeis a legally binding administrative arrangement, issued by a County Court, that enables you to pay only what you can afford each month (after your essential expenditure such as priority debts and general living costs have been accounted for) towards your credit debts. As long as you maintain the payments that the court has deemed affordable to you, all interest is frozen and you will be legally protected from your creditors taking any further enforcement action for the duration of the Administration Order.


Q: How much will an administration order cost?

  • An Administrator is allowed to take up to 12.5% of the monthly payments for his/her service.
  • The employer of a debtor is allowed to take a 5% management fee, because it must pay the Administrator the specified sum of money if there is an emoluments attachment order granted.
  • An administration order does not stop interest from running on outstanding debt.


Q: If I have not paid up my administration order and I remove 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 removed, 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.



Q: 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 letter, section 74U certificate but the administration order still reflects on my credit report. What can I do to remove it?

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 removed, a removal order is obtained from the court and we forward the removal 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?

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.


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