Debt Arrangement Schemes Pass £100 Million Repayments Landmark

November 12, 2015

Entrants into Debt Arrangement Schemes (DAS) across Scotland have paid more than £100 million back to their creditors since 2011, according to official figures on the subject.

The details of how DAS solutions function were changed in 2011 and they have apparently been working well ever since as a means of seeing creditors paid back while giving debtors a chance to get to grips with their financial situation.

DAS were first introduced in Scotland in 2004 as the government aimed to improve the ways in which indebted individuals could reach agreements with their creditors and manage their finances more effectively.

“The Debt Arrangement Scheme has been a real success story for Scotland,” the Scottish government’s business minister Fergus Ewing told an audience at the Insolvency and Restructuring Conference recently.

“Over £100 million has now been returned to creditors through DAS since the new regulations were enacted four years ago, opening the scheme up to more people who need help – a vast sum of money and a remarkable achievement,” he said.

According to the Accountant in Bankruptcy (AiB), which administers Debt Arrangement Schemes, the amounts of money being paid back to creditors via DAS has been increasing year-on-year since 2011.

There was as much as £9.6 million repaid through DAS in the three months to the end of September 2015 alone and the overall total repaid through the schemes since 2011 now stands at just over £112 million, the AiB has said.

Speaking on November 11^th, Mr Ewing pointed out that the Financial Inclusion Commission, an independent policy research body, has called for DAS to be used as a means of helping indebted people throughout the UK.

“Earlier this year, the Financial Inclusion Commission highlighted that existing UK debt solutions are not fit for purpose and recommended DAS, which freezes interest and charges on debts and gives debtors much-needed breathing space, is adapted and rolled out across the whole of the UK,” Ewing explained.

“It is tremendously gratifying to see a respected body like the Financial Inclusion Commission recognise that Scotland is leading the way when it comes to issues of personal debt management and debt relief,” he said.

If you live in Scotland and you are struggling to reach agreement with your creditors then a Debt Arrangement Scheme might be able to help you. Call Scotland Debt Solutions to find out how.

How to clear your council tax arrears with a trust deed

6th March 2018

If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]

Read more

How to restore credit rating after Scottish debt programme has been satisfied

5th March 2018

A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]

Read more

I’ve received a Simple Procedure Notice of Claim – what now?

4th March 2018

If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]

Read more

What is a Bankruptcy Restriction Order? (BRO)

1st March 2018

A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]

Read more

What does the DAS Fair and Reasonable Test entail?

28th February 2018

Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]

Read more

How do I apply for a Debt Payment Programme (DPP)?

26th February 2018

If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again. Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time. These programmes involve […]

Read more