Debt Arrangement Scheme

Debt Arrangement Schemes (DAS) are the Scottish alternative debt solution to a Debt Management Plan and can help you repay your unsecured debts in full whilst offering protection from your creditors.

They are only available for people who live in Scotland, so if you live in England, Wales or Northern Ireland please visit our pages on Debt Management Plans, which are the equivalent debt solution to DAS.


Debt Payment Programme (DPP)

DAS can help you by allowing you to set up a Debt Payment Programme (DPP). A DPP can help you repay your unsecured debts in full over a reasonable period of time depending on the amount of debt and how much the debtor can pay.

Regular payments towards you unsecured debts will be made to your Creditors as agreed under the terms of the DPP. Once your application to creditors has been submitted for approval, all interest and charges will be frozen provided your application is approved.


 Disadvantages of a DPP

  • A DPP will be registered on your credit file for 6 years.
  • If you do not maintain your DAS it may be revoked, meaning creditors can pursue legal action and reinstate interest and charges.
  • Unlike Trust Deeds or Sequestration, your debts will not be written off, which means it could take much longer to repay your debts.
  • Under a DPP 10% of your monthly payment is taken as fees to cover the costs of running the programme.
  • Whilst under a DPP you cannot obtain any further credit unless permitted by the DAS administrator.
  • Once approved your details will be publicly available on the online DAS register.

Advantages of a DPP

  • You make one affordable monthly payment that is disbursed to your creditors.
  • You will be debt free when your DAS is complete.
  • You are protected against any creditor action and all interest and charges will be frozen.
  • Any interest and charges is waived if you complete the programme.
  • Your creditors can’t contact you or take any further legal action against you.
  • Should your circumstances change you can apply to vary your monthly payment or request a six month payment break.


Is DAS right for me?

  • You must live in Scotland and have one or more debts
  • You are not in a Trust Deed or have been sequestrated
  • You should have a reasonable level of surplus income leftover after your normal living costs are met
  • All unsecured debts can be included as part of your DAS except court fines and child support payments.

Applying for DAS and fees

Applying for a DAS is free and can be done via your local Citizens Advice Bureau (CAB). Fee-charging organisations can also help you set-up a DAS and offer monthly management of your scheme, which often involves a set-up fee to administer your DAS, followed by a monthly management fees.

 

 


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Debt Arrangement Scheme

Updated on 2016-12-05T15:47:00+00:00, by Kristian Stock.