Das Or Debt Arrangement Scheme

Under DAS or Debt Arrangement Scheme of the Scottish Government, a debtor will repay their debts which are based on their disposable income with the help of the debt payment programme or DPP. But before they can actually apply for the DPP under DAS, they need to consult a money advisor. As far as the payment period goes, it can stretch for a reasonable amount of time and will depend on how much the debtor needs to pay and can actually pay. The creditors of the debtor will receive regular payments at a specified amount, depending on what was agreed.

The moment the either the money adviser or DAS Administrator passes the application to the creditors for their approval, all of the relevant interest, penalties, fees and charges will be frozen; but of course the creditors need to approve of them first.

How are the Debts Repaid?

Most of the time, a lender cannot lend money to any applicant who is under the debt payment programme or DPP. Before anything else they are required to notify any other lender. In order to be certain, the lender should always check the DAS Register before even evaluating the credit agreements. In case a lender would give addition credit to a person that’s under DPP, that lender won’t be able to take any action to recover their debt; they have to wait until the DPP is dine or revoked.

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Of course there are cases when it’s safe to give additional credit to someone under DPP like when:

  • Additional credit is for any emergency home repairs.
  • Additional credit is for stated funeral expenses as long as they are deemed reasonable.
  • Additional credit was approved and included in the variation of a DPP.
  • Trade debt to be used in the ordinary course of business.