dasscotland.gov.uk Debt Arrangement Scheme : DAS Scotland

Organization : Scottish Government
Type of Facility : Debt Arrangement Scheme (DAS)
Country: Scotland

Website : http://www.dasscotland.gov.uk/home

Debt Arrangement Scheme (DAS):

DAS is a government-run debt management tool which allows you to repay your debts through a debt payment programme (DPP).

Related : Scottish Prison Service VNS Victim Notification Scheme : www.statusin.org/9253.html

The DPP will allow you to pay off your debts over an extended period of time while giving you protection from your creditors taking action against you to recover the debt in the DPP. The DPP can last for any reasonable length of time and, if approved, will freeze all interest, fees and charges on the debt included, resulting in them being waived if you fully complete the DPP.

How does DAS work?:
Under DAS, you commit to a debt payment plan (DPP) which allows you to repay your debts based on your disposable income. A DPP can last for any reasonable length of time, depending on the amount of debt and how much you can pay.

Your creditors will receive regular payments towards the debt(s) owed to them under the terms agreed in the DPP. When your DPP is approved, all interest, fees, penalties or other charges owed are frozen. You are also protected from your creditors taking any action against you to recover their debt

What information is in a DPP ? :
Your DPP proposal will confirm the amount due the creditors included in your DPP.

It will clearly state:
** Your personal details
** the total amount that you owe
** details of all creditors to be included in the DPP
** the agreed amount for each repayment installment
** the frequency of the proposed payments, and
** the proposed length of your DPP.

Some of the information provided in the DPP proposal wil be shared with your creditors.

What happens if my DPP is approved?:
You will make a single regular payment to an approved payments distributor who will then in turn make payments to your creditors. You will make this payment throughout the period of your DPP, along with any additional payments agreed to.

Should your circumstances change during the period of the DPP you can make an application to the DAS Administrator to vary the agreed payments. Once you have completed the DPP you debts will be seen as satisfied

What happens if my DPP is rejected:
If your DPP is rejected, then you continue to owe the debt to your creditors. If you do not make your contractual payments your creditors could take action against you to recover the debt.

Who can apply for DAS?:
DAS is designed to help individuals,couples and businesses repay their debt. It also helps creditors to recover debt they are due. To be eligible to participate in DAS, a debtor must have one or more debts and meet the following criteria:
** be habitually resident in Scotland
** have sought the advice and assistance of a DAS approved money adviser
** want to repay their debt(s) without the threat of creditor(s) taking legal action against them
** have a reasonable level of disposable income after meeting their basic needs.

A debtor would not be eligible to participate in DAS if any of the following apply:
** they are party to a Protected Trust Deed
** they are bankrupt or subject to a bankruptcy restrictions order or a bankruptcy restriction undertaking
** their DAS application only includes one debt and they are subject to a time to pay direction under section 1 (time to pay directions) or section 5 (time to pay orders) of the Debtors (Scotland) Act 1987, in relation to that debt

** the DAS application only includes one debt and are subject to a time order under section 129 (time orders) of the Consumer Credit Act 1974 (d), in relation to that debt
** they are paying a debt(s) under a conjoined arrestment order.*

* if a creditor (whether the creditor is involved in the conjoined arrestment order or not) has tried lawfully to enforce another debt that is owed, then a debtor may be eligible to apply for DAS.

Joint DPPs:
Couples who are each liable for a debt which may be included in a debt payment plan (DPP) may apply for a joint DPP if their relationship falls within the following criteria:
** husband and wife or living together as husband and wife or
** civil partners or
** living together in a relationship with the characteristics of a husband and wife relationship, except that they are of the same sex.

Both applicants must consent to the DPP proposal.

Business DAS:
Business DAS allows partnerships, trusts or unincorporated body of persons to repay their debts over a period of time (max five years) without the threat action and will freeze all interest, fees, penalties or other charges on the debt, resulting in them being written off if the debtor fully completes the DPP.

A debtor would not be eligible to participate in Business DAS if:
** Their business is limited or public company
** Their business is not formed under Scots law
** Is carrying on business or be established outside Scotland.