If you have disposable income that would allow you to pay your debts in full within a reasonable time period, the Debt Arrangement Scheme “DAS” may be suitable.
To opt for a DAS, you need to be able to repay all creditors within a reasonable time period and each payment made during the DAS is made pro-rata to the level of each debt. This may mean paying your debts over a term of up to 10 years until all debts are settled in full. Once a DAS is approved, you are protected from further action from your creditors. Creditors cannot add any further interest or charges to your account and your assets are protected, particularly your home.
Meston Reid Limited holds a consumer credit licence (licence number – 670740) which is issued by the Financial Conduct Authority enabling us to handle debt arrangement schemes for our clients.
Questions & Answers
What is the Debt Arrangement Scheme?
DAS was introduced by the Scottish Government and is a statutory debt management tool and has become more popular in recent years with about 4,500 Scots using the facility each year. It allows you to repay your debts in full over a reasonable period of time i.e. removes creditor pressure. Interest is frozen on your debts and the process is designed to protect your house if possible.
Will DAS advice be expensive?
You can obtain free, confidential and impartial advice from organisations like the Citizens Advice Bureau or accredited local authority advisers. An initial consultation with a licensed insolvency practitioner is likely to be free.
How do I apply for DAS?
DAS is one of several options available to individuals seeking advice on their financial affairs. You are required to meet with an approved money adviser who will conduct an assessment of your financial situation to help establish if you are suitable for a DPP. Details of approved money advisers such as Meston Reid & Co can be found at www.dasscotland.gov.uk .
Can I seek protection by using DAS?
Yes. If a creditor is pursuing you for payment of a debt and has written to say they intend to take court action, you may write to the DAS administrator and intimate your intention to apply for a DPP. This is the start of the process to obtain protection under DAS.
Will entering DAS be public knowledge?
If you participate in DAS, your details will be recorded on the DAS register which is a public register www.dasscotland.co.uk and can be accessed by anyone free of charge.
Will the DAS register show anyone who looks all my creditor details, together with my income position?
No. The DAS register contains your name/address/date of birth/money adviser’s name, the approval date of your DPP, start DPP date and end DPP date.
What is a debt payment programme “DPP”?
DPP is the term given to the plan which is approved under DAS. The DPP is the payment regime that you have to follow in order to repay your creditors.
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