What is the difference between Debt Review and Administration?

D & R is both an accredited Administrator & Debt Review Counsellor, but what is the difference between Debt Review and Administration?

There are four main differences that set Debt Review apart from Administration which can be broken down into the following simple categories:

1. Limits on Debt

Under Administration your total debt cannot exceed R50 000 whereas under Debt Review there is no limit on the total amount of debt.

2. House Bonds and Car Finance

Debt Review has the ability to include a house bond and / or car finance unlike Administration which does not have this ability as it would exceed the R50 000 total debt threshold and therefore these expenses are included in your monthly budget instead.

3. Judgements & Claims with Legal Action

One of the advantages of Administration is the ability to include judgements under your admin order. This in turn means that existing garnishee orders (except for child support) will be removed from your salary deductions. Unfortunately, any claims where legal action has already commenced cannot be included under Debt Review, however, provision will be made for these in your monthly budget.

4. Self-Employment

To qualify for Debt Review or Administration an individual must be permanently employed. In addition, only Debt Review allows an individual to be self-employed as well as pensioners that do not receive a government pension.

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