The Debt Arrangement Scheme in Scotland, or DAS, enables people in serious debt to repay their creditors in full over a longer period of time. It’s a debt solution backed by the Scottish government, and works via a debt payment programme (DPP).
The coronavirus pandemic caused significant financial problems in the UK and globally, and made existing debt payment programmes difficult to maintain for many. This is why the Low and Grow Debt Arrangement Scheme was introduced in January 2021.
Interest and charges are frozen on debts within DAS, and the Low and Grow scheme provides further flexibility with regard to payment amounts, helping to prevent the widespread collapse of these important debt remedies.
Low and Grow DAS enables you to make smaller contributions towards the debts included in a debt arrangement scheme for a short period of time. Your money adviser will assess your continued ability to pay, and if they believe your financial difficulties are temporary, may recommend a Low and Grow payment plan.
This means your payments would lower, and after three months your financial position assessed again by your money adviser. Low and Grow debt payment plans are intended to last no longer than six months, which may be all the time you need for your circumstances to improve.
If you have a regular income but are experiencing short-term difficulties, you may be eligible for the Low and Grow Debt Arrangement Scheme. Your money adviser will make a proposal to creditors if they believe you can afford to pay the lower of:
In some circumstances a token payment can be put forward to creditors – if a debtor is waiting for an imminent and guaranteed payment, for example, or is about to commence work for a new employer.
Creditors included in the debt payment plan will be more likely to sanction a lower payment such as this if clear evidence is provided of the debtor’s ability to increase their payments in the near future.
To apply for a Low and Grow DAS, contact a money adviser approved by the Accountant in Bankruptcy (AiB). You’ll find a list of approved advisers on the DAS Scotland website and also on Scotland’s Financial Health website.
You’ll need to provide your money adviser with all relevant financial information. This might include your bank and credit card statements, for example, details of your income and regular expenditures, and any documentation relating to your debts.
It’s preferable to take too much financial documentation than too little, as your adviser uses it as a basis for your financial assessment, and therefore your eligibility for a Low and Grow DAS.
If you’re assessed as being eligible, the money adviser will put forward a proposal to your unsecured creditors, who can either agree the terms of repayment or refuse them. If anyone refuses the proposal, however, the adviser has the ability to put the plan in place regardless, if they believe it’s fair.
If you would like more information on the Low and Grow Debt Arrangement Scheme, or DAS in general, please get in touch with Scotland Debt Solutions. We can provide the information you need to improve your debt situation, and offer free, same-day meetings to quickly present your best options.
The Register of Insolvencies is a public register that documents Trust Deeds until five years after the discharge date and includes personal details.
Joint Trust Deeds don’t exist, however, if you want to run a Trust Deed that encompasses debts as a couple, this will be two individual Trust Deeds.
Our Scottish based team can help advise you on your debt problems.