Trapped under administration | Fin24
 
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Trapped under administration

Jul 24 2014 15:33
Fin24
A Fin24 cannot understand why he is still under administration after six years. He writes:

I have been under administration since 2008 until now. I owed my creditors an amount of R29 485 plus about R2 000 for the fees.

Every month I paid R1 000 via stop order at work and in January 2012 the deductions stopped.

I phoned the attorney handling my file or case and explained about the stop order had stopped.

She said I must not panic, because they are still busy dealing with my creditors.

I have been waiting since then.

Last month I visited them to find out how far they are with my creditors. They told me I am owing the creditors an estimated outstanding balance of R4 279.45, and this is not a final balance.

They are still busy with my creditors again. So, last week I started paying this amount via debitorder.

Please give me advice on how to get out of this situation. It has now been a long time to be under administration.

Wikus Olivier, a debt counsellor at DebtSafe, responds:

From what you have mentioned you do not have a lot of debt left. There are a few things you can consider.

Talk to your administrator to see if you can increase the amount by R500 or so.

Administrations usually take so long, because only the bare minimum is paid. The less you pay the longer it is going to take.

Ask your administrator to give you a full breakdown of what you have paid so far and also to clearly indicate the fees related to the admin.

If you increase your instalment a little, your debt will be settled through the administration in no time.

There might, however, still be some hidden fees and other amounts that they will hold you liable for.

The other option that you can consider is to talk to your credit providers directly and negotiate an instalment with each of them or even a settlement value.

If you ask your creditors for a settlement value, they are usually able to give you some discount and it would be wise to make use of that.

Once you have a settlement value you can ask an attorney to rescind the administration order and then pay your credit providers directly.

Be careful though. If you have previous judgments or garnishees they will come into effect immediately when the administration order is rescinded.

Do not use this option if you have previous judgments or garnishees. In such a case rather be open with your administrator and ask him to increase your monthly contribution.

Follow up with them regularly to see how your debt balance is reducing. Once the balances are at such a level where you can settle them, take the chance immediately.

Ask that the administration order be rescinded and ask all your credit providers for confirmation that the accounts have been settled and closed.

I would also advise that you pull your credit report to see what the effect is after your administration has been rescinded.

Should you require any further assistance, please do not hesitate to contact us and we will gladly assist.

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

- Fin24

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money  |  money clinic  |  debt
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