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.
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.
Quick Reference Table
- No Limit on the total amount of Debt
- Ability to include a house bond and / or car finance
- Claims where legal action has already commenced cannot be included (provision will be made within your monthly budget)
- Permanently employed OR Self-Employed individuals, pensioners that do not receive a government pension can qualify
- Total Debt cannot exceed R50,000
- Cannot include a house bond or car finance (provision will be made in your monthly budget)
- Judgements can be included in your order and all garnishee orders (except child support) will be removed from your salary deductions
- Self-Employed, pensioners and unemployed individuals do not qualify for Administration