Under the Debt Arrangement Scheme (DAS) you can apply for a Debt Payment Programme (DPP)
to repay all of your debts. There is no need to attend court under this scheme.
During the DPP you are protected from further legal action from your creditors and
interest and charges are frozen and then written off on successful completion of
your DPP.
To be eligible you need to owe money to more than 1
creditor and agree to a debt payment programme (DPP) with the help of a DAS approved money advisor.
The DPP is free and provides a means to paying debts as long as there is an available
sum left over after paying all priority/household expenses.
It gives protection & time to pay during the term of the DPP. It is not available
to anyone who has already been sequestrated (gone bankrupt) or signed
a trust deed.
DAS is a voluntary scheme, a money advisor helps work out a
budget, how much can be afforded each month and how long it will take to pay
the debts. Provided the agreed payments are maintained,
creditors cannot carry out enforcement action.
They are someone who, with further training and has been approved by the DAS administrator
to provide advice and act on behalf of the client to negotiate a debt payment programme
(DPP)
Contact your local Citizens Advice Bureau or local council for advice. You can also search for
a local Approved Money Adviser at www.moneyscotland.gov.uk.
Do not pay for advice ? you can get it free. Before starting a DPP, you must have received independent money advice.
They are responsible for maintaining the DAS register, which contains all the relevant
details of debt payment programmes (DPP) - The Accountant in Bankruptcy (an executive
agency of the Scottish Executive Justice Department) is the administrator.
To use DAS you must be able to repay your debts in a reasonable timeframe.
You must be resident in Scotland, you may have more than one debt and you must have
an available surplus after paying all priority/household expenses.
If the money adviser agrees that a DAS may work for you, they will register your intention
to apply for a DPP to the DAS Administrator. Your name will then appear on the DAS Register
and you will be protected from further legal action for 6 weeks. This is to allow time for your
DPP to be set up.
The money adviser will then send proposals to your creditors. If
creditors all agree or are deemed to have agreed (because they did not respond) the DPP goes ahead.
Even if creditors do not agree or object, the DAS administrator or a
Sheriff can still approve the DPP if it is reasonable to do so.
Creditors
are then bound by the DPP as long as you comply and are unable to take further legal action
to enforce the debts. This means that any assets, including your home, are protected.
The interest, fees and charges on debts are frozen for the duration of the DPP and if it is
successfully completed then these are written off.
You should not borrow money after applying for a DPP. If emergency credit is required e.g. for
funeral expenses or essential repairs, you should consult your DAS money advisor in the first instance.
The agreement can be varied to take account of this, provided all
creditors agree or if the DAS administrator decides it is reasonable to do so.
For further information visit the website:
www.moneyscotland.gov.uk