Debt Arrangement Scheme
(Scotland Only)
DAS, that is a Debt Arrangement Scheme, is not bankruptcy; it is a government approved debt management tool which allows someone in debt to repay their debts through a debt payment programme (DPP).
The DPP will allow a debtor to pay off their debts over an extended period of time while giving them protection from their creditors taking action against them to recover the debt in the DPP. The DPP can last for any reasonable length of time and, if approved and will freeze all interest, fees and charges on the debt included, resulting in them being written off if the debtor fully completes the DPP.
Advantages of Debt Arrangement Scheme
- Most forms of diligence such as arrestment of your bank account or earnings arrestment will be cancelled under a DPP
- If you have tried to negotiate with your creditors before and they have refused, a DPP will be particularly useful to you
- If you keep up with agreed payments under the DPP your creditors cannot take you to court and take enforcement action against you.
- Interest, fees and charges are frozen after your DPP is approved
- A DPP is a good option if your creditor is threatening sequestration(bankruptcy).
Disadvantages of a Debt Arrangement Scheme
- The disadvantage the DAS has is that there is no debt forgiveness - i.e. all the debt (excluding interest and charges mentioned above) needs to be paid back.
- Your credit rating will be effected by entering into a DAS.
Contact Debt Advisory Service
For more information on Debt Arrangement Schemes, please contact us on 08000 191 278, Email us at enquiries@debtadvisoryservice.co.uk or simply fill out our Debt Advice Enquiry Form.
