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Paid all your debts under your administration order! What now?

Section 74U of the Magistrates Courts Act 32 of 1944 provides that as soon as the costs of the administration and the listed creditors have been paid in full, an administrator shall lodge a certificate to that effect with the clerk of the court and send copies thereof to the creditors, where after the administration order shall lapse.

The first step is therefore to contact your administrator and enquire whether or not this process was indeed followed. This will however not automatically mean that the fact that you were under administration would be removed from your credit record and your name cleared.

Although an administration order will automatically be removed from your profile after 10 years, a further option available would be to rescind the administration order against you in order to clear your name. This entails a formal court application brought from the same court where the administration order was granted in where one specifically applies to have the administration order rescinded.

Section 74Q(1)of the Magistrates’ Courts Act provides that the court under whose supervision any administration order is being executed, may at any time upon application by the debtor or any interested party re-open the proceedings, and the court may thereupon on good cause shown rescind the administration order.

When an application for the rescission of an administration order is brought, the application must be delivered personally or sent via post to each creditor. It would in any event be advisable to get letters from the various creditors beforehand to confirm that all debts have been paid in full.

Once the Court has granted the order, you will have to submit same to the credit bureaus for the removal of the administration notice from your credit record

The administration order will (should) be removed from your credit record in approximately 20 – 30 days.

In conclusion, you have 2 options available, either wait for the administration order to lapse in terms of Section 74U after 10 years, or to apply for its rescission, once all debt has been paid in full.

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  1. Sandhir orie
    January 10, 2019

    Hi how do I get a copy of my administration order letter that it was paid in full and rescinded

    • Niel Smith
      January 11, 2019

      Good day
      You will have to ask your administrator for this.
      Kind regards

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