The Scottish Debt Arrangement Scheme, or DAS, is a debt solution that allows you to pay off unsecured debts without having to declare insolvency. The way it works means that interest and charges cannot be added to the existing debt once a proposal has been sanctioned, allowing you to repay your debts in full over an extended period of time.
Money advisers play a key role in the success of DAS in Scotland. The process was originally introduced by the Scottish government in 2004 to help Scottish residents avoid legal action by their creditors.
So what role does a money adviser adopt in the procedure, and how can they help you pay off your debts and start afresh financially?
The first aspect of an approved money adviser’s role within DAS is to advise on your suitability for the scheme. They offer professional guidance on your options, and will look at your financial situation in detail.
If DAS is considered an option, the money adviser will determine how much you can repay to your creditors each month under the scheme. They will establish how much you owe to individual creditors, scrutinise your financial information including income and expenditure, and put together a debt payment plan (DPP). An application is then made to the Accountant in Bankruptcy (AiB).
This professional assessment of your financial situation is crucial to the success of DAS, and is a non-negotiable aspect of entering the scheme. It ensures you stand the best chance of successfully completing the agreement without issue – because this type of agreement is legally binding on both parties, your creditors would be able to force you into bankruptcy if you failed to make the DAS payments.
If your circumstances change during the course of the Debt Arrangement Scheme, the money adviser should be informed so they can arrange a payment break for up to six months if necessary, depending on your eligibility. They will adjust the terms of the debt payment plan if appropriate, extending it so that, overall, no repayments are missed.
If your approved money adviser charges a fee, they must also let you know of other money advisers who don’t charge. You can find DAS approved money advisers near you by visiting Scotland’s Financial Health Service website and inputting your postcode, area, town, or city.
There are three main participants involved in the Scottish Debt Arrangement Scheme:
Our licensed insolvency practitioners at Scotland Debt Solutions specialise in helping Scottish residents escape debt, and can help you decide whether DAS is the best option. Please call to arrange a free meeting at one of our offices located around Scotland.
The Tenant Hardship Loan Fund is available for individuals facing the risk of eviction as they cannot claim housing benefits or support.
Are personal debts in Scotland written off after six years? What is statute-barred debt? When is Scottish debt unenforceable? Find out more in this article.
Our Scottish based team can help advise you on your debt problems.