What is a Debt Arrangement Scheme (DAS)
A Debt Arrangement Scheme (DAS) is a government backed process which helps individuals repay their debts over an agreed period of time. It is the only government backed debt management plan available for Scottish residents.
All interest payable on your debt, penalties and charges are frozen and you are protected from the threat of legal action over your debt.
Is DAS right for you?
You must seek advice from a registered money adviser before applying – Dunedin Advisory are able to assist you with this.
You will need to be able to repay the full value of all of your debts over a number of years. The scheme allows you to pay your debts based on what you can afford, not what the people you owe money to (called Creditors) demand. The Dunedin Advisory experienced team will help you work out what you can afford to pay every month and for how long you’ll need to make that payment – not what your creditors demand. We consider the ideal repayment term is up to five years, however the scheme does allow for a proposal of up to ten years if this is necessary.
How much do you pay?
Interest and charges are frozen at the time your DAS is accepted. You only pay back the sum of your debts at that time. We will help you calculate the monthly payment you can afford.
Do you need to sell your assets?
As you are paying your creditors in full from your earned income, you don’t need to include or sell your assets – unless you choose to do so.
How do my debts get paid?
Your debts are paid from the monthly contribution you make. Your creditors are paid on a regular basis. Legislation states creditors must receive at least 78% of the debt due to them. The reason they do not receive 100% of the amount is the fees and charges payable to administer the scheme come from the funds that are ingathered. You do not pay any additional fees.
Can your creditors object?
Yes – they can. Creditors are allowed 21 days to advise if they accept or reject the terms of your scheme. Where a creditor doesn’t respond they are treated as having agreed. Where they object to the scheme, then the govt office the AiB (Accountant in Bankruptcy) is required to assess whether the scheme can proceed or not. The AiB will consider whether it is deemed reasonable or not. Where the AiB approve a scheme following a creditor objection, the creditor is bound by that decision.
How we help you
We will discuss your circumstances with you and advise you if the debt arrangement scheme is applicable and if you can meet all of the required criteria. Where you cannot meet the criteria, we will work with you to find other solutions. Where you can proceed with a debt arrangement scheme, we will support you through the process as your Continuing Money Adviser. That means assisting you with your application; reviewing your financial position and contribution regularly; and ensuring that your Debt Payment Plan (DPP) is completed.
You can find out more about DAS by going to https://www.aib.gov.uk/debt-arrangement-scheme
There is no substitute for detailed advice, tailored to your circumstances. Contact us and we will arrange to meet you, free of charge, for a discussion on what your options may be.