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THE DEBT ARRANGEMENT SCHEME (DAS) DEBTOR INFORMATION BOOKLET
Debt ArrangementScheme
This booklet provides general information on the Debt Arrangement
Scheme (DAS) and is not intended as a full statement of the law.
DAS is a statutory debt management scheme introduced by the
Scottish Government to help people repay their debt(s) over an
agreed period of time without the threat of court action from
creditors.
For a variety of reasons some people find that they are struggling
to repay their debt(s) and need support to cope with their
situation. Getting advice as soon as possible can help you to deal
with your debt(s).
You can find contact details of some organisations who offer free
advice at the back of this booklet. Further information on some
alternatives to DAS is also included later in this booklet.
The main legislation relevant to DAS is the Debt Arrangement and
Attachment (Scotland) Act 2002. More information on DAS and all
related legislation and publications are available on the DAS website
at: www.dasscotland.gov.uk/debtors
CONTENTS
1. DEBT ARRANGEMENT SCHEME 1.1 What is DAS?
1.2 How can DAS help me?
1.3 Does DAS cost anything?
1.4 Am I eligible?
1.5 Who is involved?
1.6 Is DAS only available for individuals?
1.7 Will it affect my credit rating?
2. APPLYING FOR DAS
2.1 How do I apply for a DPP?
2.2 What information is in a DPP?
2.3 What happens if my DPP is approved?
2.4 What happens if my DPP is rejected?
2.5 What is the Fair and Reasonable test?
2.6 Am I protected during the application period?
2.7 What happens when I complete my DPP?
3. CHANGES TO YOUR DPP
3.1 What if I do not comply with the conditions of my DPP?
3.2 What can I do if my DPP is revoked?
3.3 What happens if my circumstances change?
3.4 How many times can I apply for a payment holiday?
3.5 How do I apply for a variation?
4. DAS WEB PORTAL 5. ALTERNATIVES TO DAS 6. CONTACT INFORMATION AND ADVICE SOURCES
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1. DEBT ARRANGEMENT SCHEME
“ DAS is the only official government debt management scheme in Scotland, created to help you repay your debt.”
1.1 What is DAS?The Debt Arrangement Scheme (DAS) is a statutory debt
management scheme introduced by the Scottish Government to
help you repay your debt(s).
Under DAS, you can apply for a Debt Payment Programme (DPP)
that allows you to pay off your debt(s) over an extended period of
time. Your DPP will take into account what you can reasonably pay
back at regular intervals based on your disposable income.
There is no limit on the level of debt or the repayment period in
a DPP. A programme can last for any reasonable length of time
subject to the value of the debt. When the DPP is approved all
interest, fees, penalties or other charges that would have applied
to your debt(s) are frozen and are waived upon completion of your
DPP.
Once approved, a DPP can prevent enforcement of debt(s) by the
court. Creditors included in your DPP are prevented from petitioning
for your bankruptcy as long as you maintain the agreed payments in
your DPP under DAS.
1.2 How can DAS help me?DAS is a Scottish Government scheme that: allows you to make one regular payment towards clearing your
debt meaning you don’t have to deal with your creditor
individually.
freezes interest, fees and charges on your debt, from the date
your DAS debt payment programme is approved and this is
waived on completion of the DPP.
provides protection from creditors taking enforcement action to
recover money owed to them, and
is often free for people paying debt under an approved debt
payment programme (DPP). However, some money advisers
may charge a fee for their service.
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Your Money Adviser will help you decide if DAS is right for you.
1.3 Does DAS cost anything?You can get free confidential and impartial advice in your local
area or pay for advice through a number of financial services
organisations.
People who can give free, face-to-face advice include advisers in
Citizens Advice Bureau and Local Authority money advisers.
You can find contact information at the back of this booklet or find
a money adviser near you on the DAS website at:
www.dasscotland.gov.uk/find-a-money-adviser. Some organisations
may also give information and advice over the telephone or online.
Please note that some organisations will charge you for the provision
of money advice. You should check the details and costs with your
chosen money adviser prior to entering into any agreement.
1.4 Am I eligible?You may be eligible to participate in DAS if you have one or more
debts and meet the following criteria: you live in Scotland; you have sought the advice and assistance of a DAS approved
money adviser; you wish to repay your debt(s) without the threat of your
creditor(s) taking legal action against you; you have a reasonable level of surplus income after meeting
your basic needs, for example (mortgage, rent, utilities, food,
council tax).
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You are ineligible to participate in DAS if you: have granted a Protected Trust Deed from which you have not
been discharged; or are bankrupt or subject to a Bankruptcy Restrictions Order or a
Bankruptcy Restriction Undertaking; or are subject to a time to pay direction under section 1 (time to
pay directions) or section 5 (time to pay orders) of the Debtors
(Scotland) Act 1987, in respect of that debt (only applicable
where a debtor has a single debt to be included in DAS); or are subject to a time order under section 129 (time orders)
of the Consumer Credit Act 1974, in respect of that debt
(only applicable where a debtor has a single debt to be
included in DAS); or are paying a debt(s) under a conjoined arrestment order.
If you have a conjoined arrestment order and a creditor (it does not
matter whether this creditor is involved in the conjoined arrestment
order or not) has tried lawfully to enforce another debt(s) that you
owe, then you may be eligible for a DPP.
If you are not certain whether you are eligble to apply contact your
money adviser for advice.
1.5 Who is involved?Debtor: An individual who has personal debt(s) and has agreed to a
Debt Payment Programme (DPP).
DAS Approved Money Adviser (a money adviser): An individual who
meets the criteria to offer a DPP under DAS as a debt management
option.
Creditor: An individual or organisation who you owe money to.
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DAS Administrator: The Accountant in Bankruptcy (a Scottish
Government official) who oversees the administration of every DPP.
Payments Distributor: an organisation responsible for the collection of
DPP payment instalments from debtors and the distribution of these
funds to creditors.
1.6 Is DAS only available for individuals?Couples who have at least one debt for which they are jointly liable
may apply for a joint DPP if their relationship falls within the following
criteria: husband and wife or living together as husband and wife; civil partners; or living together in a relationship with the characteristics of a
husband and wife relationship, except that they are of the
same sex.
For a joint DPP proposal to proceed, both applicants must consent to
the DPP proposal.
1.7 Will it affect my credit rating?If you participate in DAS then your details will be recorded on the
DAS register. This is a register which can be accessed free
of charge. Creditors and credit reference agencies check this
register on a regular basis and may update your credit file to reflect
this information.
While you have a DPP under DAS, you will not normally be able to
access further credit.
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“ DAS freezes all interest, fees, penalties or other charges that would have applied to your debts and waives them upon completion of your DPP”
2. APPLYING FOR DAS
2.1 How do I apply for a DPP?To apply for a DPP under DAS you must seek the advice and
assistance of a money adviser. Your money adviser will discuss your
income and expenditure with you and calculate how much surplus
income you have. They will also ask you to provide proof of your
financial circumstances.
If you and your money adviser agree that you are suitable for DAS,
your money adviser will apply for a DPP on your behalf.
The details of your DAS DPP proposal are sent to all of the creditors
that you include in your DPP.
2.2 What information is in a DPP?Your DPP proposal will clearly state: the total amount that you owe; the agreed amount for each repayment instalment; the frequency of the proposed payments; and the proposed length of your DPP.
Each creditor in your DPP will be given the opportunity to accept or
reject the terms of your DPP proposal.
The creditors included in your DPP are given a period of 21 days to
respond to the DPP proposal. If creditors all accept or are deemed
to have accepted (because they do not respond within the 21 days)
the DPP under DAS is agreed automatically. Creditors in your DPP will
then be bound by this DPP provided that you continue to adhere to
the agreement.
If the creditors included in your DPP do not consent to your DPP
proposal, the DAS Administrator can still approve the DPP if it is found
to be fair and reasonable to do so.
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2.3 What happens if my DPP is approved?If your DPP proposal is approved, your debt(s) will be paid through a
single regular payment.
An approved payment distributor is responsible for making payments
to your creditors. Your money adviser or the DAS Administrator will
make the necessary arrangements with an approved payment
distributor to allow your DPP to start.
You can make your payments to the payments distributor by: payment mandate to your employer; direct debit or standing order; smart card, swipe card, smart key or other type of payment card
or key; or another method of payment which has been agreed with the
DAS Administrator.
Your initial payment must be made within one month of the date
your DPP was approved.
2.4 What happens if my DPP is rejected?If your DPP proposal is rejected, you should contact your money
adviser to discuss your options. This may include submitting a revised
proposal.
You also have the right to appeal to a sheriff on a point of law
against the DAS Administrator’s decision to reject your application.
2.5 What is the Fair and Reasonable test?The Fair and Reasonable test is the criteria that the DAS Administrator
will use when deciding on whether to approve or reject a DPP
application.
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In considering whether to approve or reject a DPP the DAS
Administrator must take into account: the total amount of debt; the total period of time for the proposed payment plan; the method and frequency of the regular payments; the extent to which the creditors have consented; any other views from the creditor; comments made by the money adviser; any previous DPP application; and any other factor which the DAS Administrator considers appropriate
2.6 Am I protected during the application period?Depending on your individual circumstances, your money adviser
may ask you to advise the DAS Administrator that you intend to
apply for a DPP and this is referred to as an intimation.
An intimation will protect you from action to enforce payment of
any debt(s) for an interim period of up to 6 weeks immediately prior
to the submission of your DPP application. You are only allowed to
submit one intimation in any 12–month period.
Once your DPP application is submitted, you will remain protected.
This protection will be removed should you decide to withdraw
your DPP application, or if your application is rejected by the DAS
Administrator.
2.7 What happens when I complete my DPP?Once your DPP has been completed your details are removed from
the DAS Register and your creditors will be informed that your DPP
debt(s) have been repaid.
If you are repaying your DPP direct from your wages, the DAS
Administrator or your money adviser will write to your employer to
cease the deduction from your wages.
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3. CHANGES TO YOUR DPP
“ If your circumstances change you may apply for a variation to your DPP.”
3.1 What if I do not comply with the conditions of my DPP?If you miss payments or make part payments resulting in you owing
the equivalent of two of your agreed DPP instalments, your DPP may
be revoked.
If you fail to comply with any of the conditions of your DPP, then the
DPP may be revoked and your creditor(s) will be able to pursue
enforcement action against you.
3.2 What can I do if my DPP is revoked?If your DPP is revoked, you will be liable for all interest, fees and
charges that would have been payable had you not entered into
your DPP. You should contact your money adviser to discuss your
options. You have the right to appeal to a sheriff on a point of law
against the DAS Administrator’s decision to revoke your DPP.
3.3 What happens if my circumstances change?If your circumstances change and you can no longer afford the
agreed payments, or wish to increase the level of payment, you may
apply for a variation to your DPP.
You may wish to discuss this with your money adviser before you
decide to proceed.
DPPs sometimes become unmanageable due to a short–term
income shock where an individual, or someone in their household,
experiences a reduction in their disposable income.
In these circumstances, a debtor can apply for a six–month payment
holiday where their disposable income has reduced by 50% or more
in the following circumstances: a period of unemployment or change in employment; a period of leave from employment for maternity, paternity,
adoption or to care for a dependant;
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a period of illness of the debtor; divorce, dissolution of a civil partnership or separation from a
person to whom the debtor is married or the civil partner; death of a person with whom the debtor shared care (financial
responsibilities or otherwise); the payment holiday will interrupt the term of the DPP, therefore
the term of the DPP will be extended by the same period.
3.4 How many times can I apply for a payment holiday?There is no limit to the number of times you can apply for a payment
holiday provided you meet the necessary criteria. Before approving
the variation, the DAS Administrator will take previous payment
holidays into account as part of the decision-making process where
appropriate.
3.5 How do I apply for a variation?You or your money adviser may apply to the DAS Administrator for a
variation to the DPP.
An application for a variation of a DPP can be made: on agreement between the debtor and each creditor in the
DPP; on agreement between the debtor and a creditor that a
debtor’s liability to repay a sum is to be discharged; on a significant change in the debtor’s circumstances; where the amount due under the DPP was wrongly assessed; where additional debt(s) come to light that were not included in
the original DPP; and where the debtor requires credit for emergency repairs, funeral
expenses or other exceptional items.
On application for a variation, your new circumstances will be
considered by the DAS Administrator and, if appropriate, a revised
payment programme may be agreed.
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4. DAS WEB PORTAL
“ The web portal – gives you online access to your case so you can see what’s happening with your
payments.”
DAS has a dedicated web portal that gives you online access to the
DAS case management system – Debt Arrangement Scheme Hub
(DASH). This has been developed to provide you with information on
the lifecycle of your DAS case.
Your money adviser will provide you with log–on details and a
password which will allow you access to the online system to review
the status of your case.
Further information on how to access DASH can be found on
www.dasscotland.gov.uk or by contacting the DAS Administrator.
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5. ALTERNATIVES TO DAS
“ A trust deed can become protected. This means that your creditors cannot take court action against you for the debt(s) that you owed when the trust deed was agreed provided that you meet the terms of the trust deed.”
Debt Management Plan – (DMP) A voluntary agreement between you and your creditors to make a
set payment toward your outstanding debt.
DMPs are managed by firms known as Debt Management
Companies, who negotiate with your creditors and manage the
payments on your behalf. Your agreed payments are based on
how much you can afford to pay. These payments are distributed
between all your creditors.
When your debt management plan is being set up, your creditors
may agree to freeze any interest charges but are not obliged to do
so. Your creditors are still entitled to take action to enforce payment
of your debt(s) whilst you are subject to a DMP.
Voluntary DMPs do not offer the same security as a DAS DPP.
Please note that some Debt Management Companies charge for
the provision of advice and ongoing administration of a DMP. You
should check this with your chosen adviser prior to entering into any
agreement.
Trust Deed A formal arrangement where a debtor conveys his estate to a
trustee for the benefit of his creditors. The trustee must be a licensed
insolvency practitioner.
To enter into a trust deed you must either have assets that can be
sold or you must be able to make regular payments to your trustee
from your income.
A trust deed can become protected. This means that your creditors
cannot take court action against you for the debt(s) that you owed
when the trust deed was agreed provided that you meet the terms
of the trust deed.
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If your creditors do not agree to your trust deed becoming
protected, they can still take court action against you. If you do
not co-operate with your trustee, your trust deed may fail and your
creditors can take legal action to recover what you owe them,
including making you bankrupt. Your trustee can also make you
bankrupt if you do not co-operate with them.
It is important to note that your trustee can apply to make you
bankrupt at any time during the trust deed, if they think that this
would raise more money for creditors, although this does not
happen often.
Bankruptcy Bankruptcy is a legal declaration that someone cannot pay their
debt(s).
If you are declared bankrupt, control of things that you own,
including your home, are passed to your trustee. You may also be
required to make a regular payment from your income.
Details of individuals who are bankrupt or have granted a protected
trust deed are recorded on the public Register of Insolvencies.
http://roi.aib.gov.uk/roi/
For further information on the above alternatives to DAS please
contact your local Money Advice Centre or Citizens Advice Bureau.
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6. CONTACT INFORMATION AND ADVICE SOURCES
“ Getting advice as soon as possible can help you to deal with your debts.”
To get more information on DAS and alternative debt relief and
management options, contact:
DAS AdministratorAccountant in Bankruptcy1 Pennyburn RoadKilwinningAyrshireKA13 6SA
Telephone: 0300 200 2600
Fax: 0300 200 2600
E-mail: [email protected] (for general information on the DAS)
Website: www.dasscotland.gov.uk
For free advice on debt contact:
Money Advice ScotlandTelephone: 0141 572 0237
Website: www.moneyadvicescotland.org.ukE-mail: [email protected]
Citizens Advice ScotlandTelephone: 0131 550 1000
Website: www.cas.org.uk
National DebtlineTelephone: 0808 808 4000
Website: www.nationaldebtline.co.uk/scotland
Trading Standards Scotland Website: www.scotss.org.uk
There are other organisations which can provide you with
alternatives to entering DAS. Some of these organisations may
charge a fee for their services. You can find the contact details for
these organisations in your phone book.
This publication is available on request in communitylanguage versions and alternative formats. Please contact0300 200 2600 for this to be arranged.
We have written this booklet for general guidance only. It is not a detailed or full statement of the law.
Tha am f oillseachadh seo ri fhaot ainn air iarrt as ann ancànanan coimhearsnachd agus ann an cruthan eile.Cuiribh �os gu air son seo a chur air dòigh.
0300 200 2600
0300 200 2600
0300 200 2600
0300 200 2600
0300 200 2600
0300 200 2600
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To get more information on DAS and alternative debt relief and
management options, contact:
DAS AdministratorAccountant in Bankruptcy1 Pennyburn RoadKilwinningAyrshireKA13 6SA
Telephone: 0300 200 2770
Fax: 0300 200 2601
E-mail: [email protected] (for general information on the DAS)
Website: www.dasscotland.gov.uk
supported by
APS Group Scotland DPPAS11878 (08/11)