Debt Arrangement Scheme (DAS)
With DAS, you could benefit from frozen interest & charges – and no further legal action by your unsecured creditors – while you make one affordable monthly payment to clear your debts in full over time.
What is DAS?
The Debt Arrangement Scheme (DAS) is a Government-run debt management programme that allows you to pay back your debts without having to worry about increased interest & charges.
You pay back the total amount of your unsecured debts by making one affordable monthly payment for as long as you need until all your debts are cleared.
While you’re in a DAS, your unsecured creditors are forced to freeze interest & charges, and they are not allowed to take any further legal action against you.
Is DAS the right debt solution for me?
DAS is only available to Scottish residents – so if you reside in Scotland and are struggling with your debts, DAS could be an option for you.
There is no limit in which you have to pay back your debts, and there are no minimum or maximum debt levels to qualify for DAS.
As long as you can afford to make a payment towards your debts each month – after your essential living costs have been taken care of – you should be able to qualify for DAS. When you contact PayPlan we will discuss all of your options and explain which debt solutions you do qualify for.
If it would take a lengthy period of time to pay back your debts through a Debt Arrangement Scheme, we might suggest you look at other debt solutions – like a Protected Trust Deed or Sequestration as these would both allow you to become debt free quicker. `
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What is a Debt Payment Programme (DPP)?If DAS is the right option for you, you can propose a Debt Payment Programme (DPP) which will allow you to repay your debts in full, but at a rate that you can afford.
What are the criteria for DAS?
To qualify for the Debt Arrangement Scheme, you must meet a few conditions:
- You must live in Scotland
- You must have more than one debt that you cannot afford to repay
- You must have some spare income after paying all your essential household bills and living expenses
How does DAS work?
Step 1: Finding the right debt solution
When you contact a money adviser like PayPlan, we will look at all the different debt solutions that could be available to you. At this point we will also assess your income & expenditure, to see how much you can afford to pay back to your creditors each month.
Step 2: Proposing a DPP
If DAS is the recommended option for you, we will suggest you contact an authorised money advisor, who will help you to propose a Debt Payment Programme (DPP) to your unsecured creditors. The DPP proposal will include details of your total debts, what you can afford to pay each month, and how long it will take you to pay back all your unsecured debts in full. As soon as your application is submitted, any current legal proceedings against you will be stopped, and interest & charges on your unsecured debts will be frozen.
Step 3: Creditors decision & appeal
After the DPP proposal has been submitted, it is up to your unsecured creditors to decide whether to accept or reject it. If one or more of your unsecured creditors objects to it, this would stop it going any further. Your DAS Administrator will then judge whether what you proposed was ‘fair and reasonable’. This can overrule the creditors’ decision. Most DAS applications are approved, and then you will just go ahead and make your payments as agreed to your payment distributor.
If you are struggling with your debts, don’t suffer in silence. PayPlan has a team of friendly, experienced advisers who have spent years helping people get their lives back on track. If you need help, we are here for you.
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