What is the difference between Debt Counselling, administration and liquidation?
• Debt Counselling: A Debt Counsellor restructures instalments to allow the consumer to pay his / her debt and meet his / her basic living expenses. Debts are paid monthly. • Administration: A legal process, where the instalments are reduced, but creditors only receive payment every three months and the term of repayment is much longer than under Debt Counselling. Debt must be less than R50 000 to qualify. • Liquidation: A legal process where assets are sold to try and lessen the debt and the Court will appoint somebody to manage your finances. This is costly and you will be blacklisted for 30 years or until the Court declares you as rehabilitated.
