What You Need to Know About an Administration Order
Administration orders are also abbreviated as AO’s and allow one to be able to make affordable payments to a court on a monthly basis, which is paid to creditors through court.
It allows for protection over the individual that owes substantial amounts of debt to their creditors.
Since AO allows you to make your payments through court, your creditors must first approve the payments that are made by you, to them by using this method.
What AO’s also does, apart from protecting you from legal action being taken against you, is it enables you to stop receiving phone calls and letters that ask you to make payment or threatens your accounts from going into arrears.
What Do You Need to Qualify for AO?
The first thing you’ll need is an unpaid court judgement, also known as a CCJ. After you’ve obtained that, you’ll also need two or more debts that need to be paid, as well as a limited amount of debt, that doesn’t surpass a few hundred thousand Rands worth of debt.
If you’re registering for AO and it appears you will need more than three years to pay your debt, the court will possibly provide you with a composition order, which will limit the duration you’re allowed to pay debts back.
There are no fees required to be paid upfront, there is, however, administration costs involved. You’ll also have to fill out an application form and send it to court, after which you will have to attend court to answer more questions. This process will determine whether an AO is suitable for your debt situation, or not.
More About Administration Order
- Applying for AO is free.
- If you adhere to making payments on time, under court order, creditors won’t be able to take action against you, which is considered one of the biggest causes of stress regarding debt. When applying for AO, you’ll also be able to reduce stress.
- You’ll only be able to apply for AO once a creditor takes you to court and make a case against you, otherwise known as a CCJ.
- Whether the AO might affect your credit, or not, doesn’t matter as a CCJ against you, already affects your credit score.
Need help with AO? Credit Matters can assist you with administration order and debt counselling.