Debt Arrangement Scheme (DAS)
Debt Arrangement Schemes (DAS) were introduced by The Scottish Government in 2004 as a solution to help people in Scotland struggling with mounting debts and making payments to creditors. It was set up to offer an alternative solution to things like Sequestration and Trust Deeds which can lead to people loosing their homes and other equity possessions in order to recover debts.
DAS is a debt management facility that will allow people struggling with debt to repay their debts in full through the means of a debt payment programme (DPP). The Debt Arrangement Scheme allows for an extended time period to pay back the debts owed to creditors whilst offering protection from creditors taking any action to recover the debts, meaning assets like your house are safe. It also offers the benefit of having all interest, fees and charges frozen and then written off upon successful completion of the payment programme. By increasing the payment time period and freezing these charges it drastically reduces your monthly outgoings, easing the pressure and allowing a sense of normality to return to your life.
How does a Debt Arrangement Scheme work?
It's quite a straightforward process and it can be in place within 3-4 weeks.
How do I setup a Debt Arrangement Scheme?
THE FIRST STEP involves finding a money advisor like Debt Made Simple to act on your behalf. This is one of the requirements of the Debt Arrangement Scheme as it must be managed by a skilled and experienced advisor. Your applications must be processed by someone who has an in-depth knowledge of personal finance to ensure the payment programme is manageable.
THE SECOND STEP requires you to produce an income and expenditure list to reveal how much surplus money you have at the end of each month. The money that is left over will be used by us to calculate what can be offered to creditors within your DAS payment programme.
THE THIRD STEP is for us to create a payment plan for your debts based on your income and expenditure. The surplus money will be split and offered to your creditors accordingly, they have 21 days to respond to accept or reject the terms offered, after 21 days if no contact is received it will be assumed they have accepted the terms. However if they reject the offer, all is not lost - so long as the DPP is fair they will not be able to stop the DPP being processed.
THE FOURTH STEP is for us to send your Debt Arrangement Scheme to an administrator for approval. Once this is approved all your interest fees and charges will be frozen and at that point you may need to pay a small amount of money into a contingency fund to cover any issues that may cause the DPP to go off track – like car or home repairs etc.
THE FIFTH STEP is for your approved Debt Payment Programme to be added to the Debt Arrangement Scheme register. We then send your payments to each creditors until your payment programme comes to an end. After the time period of your payment programme ends you will be free from debt and able to move forward to a brighter future.
To find out more about Debt Arrangement Schemes, visit our specialised sister site: The Scottish Debt Doctor
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