If you are (A) not in the position to pay all your debts; (B) these debts are not more than R 50 000.00; and (C) you do not own any other property, which may be sold to pay the debts; you may apply for an Administration Order.

This will protect you from your creditors and no one may take judgment against you, however, this is temporary. In terms of the Administration Order, the court decides how much you need for basic necessities, and then determines how much must be paid to an administrator.

The administrator then makes payments every 3 months to your creditors. The cost of an Administration Order can be very high and you should consult with an attorney to check these costs in order to make an informed decision before a formal application is made.

The Administration Order remains listed while you are under administration and for a further period of five years after that.