Debt Arrangement Scheme (DAS)
A Debt Arrangement Scheme (DAS) is a government-run debt solution system available only in Scotland. It allows people struggling with overwhelming debt to make steps to settle what they owe through monthly payments via a Debt Payment Programme (DPP).
Can I apply for a DPP through the DAS?
You will need to meet certain criteria to qualify for a Debt Payment Programme (DPP) through the Scottish Debt Arrangement Scheme, which will depend on the amount that you owe and your personal circumstances. For example, you'll need to have disposable income available at the end of the month once you have paid all essential costs (i.e. your mortgage).
Before applying for a Debt Payment Programme through the Debt Arrangement Scheme, you first need to consult a financial adviser to ensure that this is best route to take.
How does a DPP work?
When the application for a Debt Payment Programme is received, a Debt Arrangement Scheme administrator will draw up a proposal which will be sent to your creditors for their approval. The creditors then have 21 days to either accept or decline the offer of the payment plan. If no response is received, it will be assumed that the proposal has been consented to and the DPP will go ahead. The creditors can reject the DPP, which means that an alternative type of debt solution may need to be explored. However, in some circumstances, the DAS can still authorise the proposal if they feel it's fair to do so.
Affordable monthly payments to be shared amongst your creditors will then be arranged via the Debt Payment Programme, based on your circumstances. If these circumstances change, the DPP can be amended to take them into consideration.
How will a DPP affect me?
A Debt Payment Programme is a form of insolvency, so it will affect your credit rating which could mean that gaining credit in the future is more difficult. You will also appear on the DAS register (the record available for the public to search) from the point of applying for the DPP up until all debts are cleared.
Your DPP will last as long as it takes to clear all outstanding payments, and it will freeze all interest and additional charges on existing debt. However, you must maintain regular payments as arranged by the DAS administrator, or you risk having your DPP revoked. This will then mean that your creditors can take further action against you to recover the owed funds, such as requesting that you're made bankrupt.
For more information regarding Debt Arrangement Schemes, call us now on 0808 163 9579 to speak to an advisor or complete the form below.
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