Debt Counselling vs Administration vs Sequestration in South Africa

Three different legal remedies

Debt counselling, administration and sequestration are not interchangeable. They sit in different legal frameworks and can have very different consequences for assets, credit and creditors.

Debt review

Debt counselling is a National Credit Act process for over-indebted consumers, handled through a registered debt counsellor and the required legal process.

Administration orders

Administration is a separate legal route and should not be described as debt counselling. It has its own requirements, limits and court process.

Sequestration

Sequestration is an insolvency process and can affect assets and legal status in serious ways. It requires specialist legal advice.

Do not choose from a table alone

Your debt types, income, assets, legal notices and creditor actions can change the answer. Use online comparisons only as a starting point.