SA DEBTSAVERS offers a formal debt administration service to customers who are struggling to repay their debts.
A thorough analysis first has to be done in order to determine the client’s current financial position. A solution suitable to the needs of the client then has to be determined accordingly and this option will then be suggested to the client. The application form that is completed containing all the client’s information, will provide our consultants and counsellors when applicable, with a complete picture of the client’s financial position and therefore also serves as a financial analysis. All alternative solutions must be investigated before a formal administration is suggested. Should it then be decided to continue with an application for administration, this must be the only available option left for resolving any client’s problem.
The Debt Administration option can be summarised as follows:
- The client completes an application form and states his financial position.
- Possible solutions are discussed and the client is informed about the available options.
- Advice on budgeting (e.g. cutting down on expenses, bookkeeping of household expenses, etc)
- Investigating alternative arrangements with creditors
- General financial advice
- Insurance advice
- Financial education (consumer education, ex on hire purchases, high interest loans, no deposit sales, etc)
- Voluntary Distribution
- Legal Administrations (used as a last option)
From investigations done it has become clear that legal administration, in many instances, provides the best long-term solution for people experiencing serious debt problems (total debt not exceeding R50 000). This is also then the reason why SA DEBTSAVERS recommends legal administration as an effective solution.With the client’s consent, SA DEBTSAVERS will be assisting them through the administration process, using a very capable and experienced attorney as administrator.
Should the application be granted in court, a court order will be issued which will determine that a set amount (administration amount) be deducted from the client’s salary every month, until all creditors have been paid back in full. The paymaster of the client will pay this amount over to administrator. The administrator will then distribute the money on a pro-rata basis amongst the client’s creditors every three months.
Should you wish to find out which option would be the most convenient and suitable please complete the brief Contact Me Form down below and one of our consultants will contact you to assist.