Commentary from our Manager: Inspections and AML Compliance
– Ms. Lovisa Indongo-Namandje
If you have tried to control your debt by budgeting and debt consolidation, but are still struggling and unable to make the minimum repayments it’s time to take decisive measures to keep your debt from spiralling out of control. One way of doing so involves an administrator helping you in paying your debt and becoming debt free. This happens through a court process where you voluntar-ily apply to court to be placed under administration. We suggest that you only choose this option if there are no other options. This option should be used as a last resort. Administration is aimed at giving you breathing space to repay your debt in full by reducing the monthly payments to an amount that you can afford. This way you will have some money for your basic needs.
You can only be placed under administration if your debt is not more than N$50,000.00 and you do not have enough assets to pay your debt. If you are listed on a credit bureau, you remain listed. The process is long and costly because it involves lawyers and legal fees. The administrator will also charge a fee for their services.
The Administrator does not give you any money but uses your own money to make the payments. An emoluments attachment order will be issued to collect money directly from your salary and pay it over to the administrator.
When you are placed under administration you lose control of your finances and the administrator takes over control. You must keep track and ensure that your administrator is making your debt repayments as they should. Once under administration you must disclose the fact that you are under administration when applying for more credit or loans. Failing to do so is a criminal offence for which you can get arrested and appear in court.
Don’t despair there are some benefits to administration for example the people you owe money can no longer deal directly with you they must contact your administrator. So no more calls harassing you. In our next issue we will give you more information on emoluments attachment orders, consent to judgments and other legal documents.
Keep your debt from spiralling out of control.