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Debt Arrangement Scheme

A Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS) allows you to repay your debts in full, free from interest and charges over an extended period of time up to a maximum of 10 years. In order to qualify for DAS, you must be a Scottish resident and be able to make a monthly contribution towards your debts. You will also have taken advice from a DAS Approved Money Advisor. If you qualify, you will also be protected from any legal action by your creditors to recover outstanding debt.

In order to qualify to enter a DPP under the Debt Arrangement Scheme you must:

  • Live in Scotland
  • Have more than one debt that you are struggling to repay
  • Have some level of spare income available to repay your debts, after paying for your basic living expenses
  • Not be in a Protected trust deed, be bankrupt, or subject to a bankruptcy order

Under the Debt Arrangement Scheme, a debt payment plan must be setup and managed by an approved money advisor. They will take time to understand you income and expenditure, and how much surplus income you have after living expenses are taken into consideration. If you are suitable for a DAS DPP, then a proposal is sent to your creditor which will state:

  • total amount of money you owe
  • agreed repayment amount for each instalment
  • frequency of the proposed payments
  • proposed length of your DPP

Even if some of the businesses that you owe money to have started court actions against you, a DAS DPP will stop this from going any further. There is also a degree of flexibility with DAS, and should you experience a reduction in your disposable income, you can apply for a variation to your DPP to make payments more manageable.

If you are not able to repay your debts in a reasonable length of time, then other debt solutions may be more suitable for you such as protected trust deeds or sequestration (the Scottish form of bankruptcy).

Contact Creditfix to speak with one of our advisers and see what’s best for you and your situation.

Call us now for immediate and confidential free debt advice on 0808 208 5198 or complete the form. We can start to work through our debt problems as soon as you contact us.

Do you have debt? Call today and find out how we can help.

Advantages

  • Protection from creditor action once the plan is approved.
  • Interest and charges are frozen at the date of application.
  • The plan does not include your assets.

Disadvantages

  • Creditors can object to the programme.
  • If you fail to cooperate, the plan can be revoked.
  • No debt write-off, as such it may take a significant period of time to complete.