routes out of personal debt
Debt Arrangement Scheme (DAS)
A Debt Arrangement Scheme (DAS) is an alternative option to formal insolvency that was introduced by the Scottish Government in November 2004. Under a DAS, a debtor commits to a debt payment programme (DPP) which allows them to repay their debts based on their disposable income.
A debtor must seek advice and assistance from a money advisor before applying for a DPP under DAS. A DPP can last for any reasonable length of time, depending on the amount of debt and how much the debtor can pay. Creditors will receive regular payments towards the debt(s) owed to them under the terms agreed. When the money adviser submits the application to creditors for approval, all interest, fees, penalties and other charges are frozen (provided that the application is approved). Debtors are also protected from creditors taking any action against them to recover their debt.
The DAS is recorded on the DAS register which is a public record and there are strict limits on the amount and type of credit you can obtain whilst in a DAS.
When to consider DAS
The DAS is suitable for individuals, couples and sole traders looking to repay their debt. 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.
SKSi will review your financial circumstances and work with you to prepare a budget showing what you can realistically afford to pay towards your debts on a monthly basis. Once your circumstances have been assessed, and your budget agreed, we will prepare the DPP and submit it to your creditors for approval.
Creditors will then have 21 days to formally object and if no objections are received it is submitted to the DAS Administrator (the Accountant in Bankruptcy) where it automatically obtains approved status. If any of your creditors do object, then the DAS Administrator has the authority to overturn this objection if they consider the proposal to be ‘fair and reasonable’ to all parties concerned.
Further advice in relation to the Debt Arrangement Scheme can be found at the Accountant in Bankruptcy (AIB) website: https://www.aib.gov.uk/debt-arrangement-scheme