Personal
Difficulties > Debt Arrangement Scheme
The Debt Arrangement
Scheme “DAS” was introduced to Scotland by the
Scottish Parliament in December 2004.
The DAS is aimed for people who want to pay what they are
due but can only do so if they are given more time. A successful
DAS will prevent creditors from enforcing court decrees.
In Scotland this is known as diligence. Common methods of
creditors enforcing diligence are an earnings arrestment,
an attachment order or presenting a petition for your sequestration.
An approved registered money adviser will provide recommendations
tailored to your situation and can assist you in preparing
the proposals of the DAS, should he consider this to be
the most appropriate way forward.
An approved registered money adviser does not have to be
a licensed insolvency practitioner. Debt advice accreditation
is open to other professions such as lawyers and independent
financial advisers.
Your proposals must be approved by the DAS administrator
who will be the accountant in bankruptcy, Edinburgh. Upon
approval of the proposals the money adviser can proceed
to prepare a debt payment programme “DPP” and
provide this to the creditors for approval.
The DPP will be based on an agreed weekly or monthly payment
to your money adviser which will be based on your current
income and expenditure pattern. At regular intervals throughout
the DPP, a payment distributor will make payments to your
creditors.
In order to qualify for a DAS you must have at least two
creditors, be habitually resident in Scotland and not be
subject to a conjoined arrestment order or to any current
insolvency proceeding.
The DAS will run until sufficient payments have been received
by the money adviser to settle your liabilities and the
costs of the DAS. This date will have been declared at the
outset of the DAS, however it is open to variation depending
on your continued payments.
Click
here for a creditors guide to DAS
The forms which
will be used by approved money advisers may be viewed and
printed if required: DAS forms
Click
here for Service Level Agreement
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