Reviewed 29th June 2023
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 decide whether it’s ‘fair and reasonable.’
Being able to apply the Fair and Reasonable Test helps you gain control over your finances, and avoid incurring further charges and interest that would worsen your situation. The Debt Arrangement Scheme is government backed, and is essentially intended to ease the financial burden when people fall into serious debt.
So what does the DAS Administrator consider when applying the test?
A number of different criteria are applied, including:
If after applying the Fair and Reasonable Test the DAS Administrator supports the proposal, the DPP will be put through and you’re protected from legal action as long as you adhere to the conditions.
Should the plan be rejected after having used the test, however, you may need to review your options with the help of your money adviser. It might be possible to put forward a new DPP proposal, or to consider whether other debt solutions could help.
Even before the Fair and Reasonable Test is applied, you may be protected from creditor legal action simply by informing the DAS Administrator that you’ve applied for a DPP. This is called ‘intimation,’ and it can offer protection from creditors for up to six weeks prior to the application being made.
It’s crucial to meet all the conditions of your DPP for its full term, however, as if the programme is revoked, creditors can backdate the additional interest and fees they would have charged.
There is some flexibility built in to a DPP should your circumstances change, and if this happens you should let your money adviser know. They can apply for a ‘variation’ to your debt management programme under some circumstances, but this must be approved by the DAS Administrator.
If you’re experiencing unmanageable debt, and would like to know more information on how a debt payment programme could help, call one of the expert team at Scotland Debt Solutions.
We’ll be able to advise you on all your options, and ensure you take the most suitable action. We offer same day meetings free-of-charge, and work from five offices around Scotland.
Our debt report is completely easy to use and is a great starting point for anyone with over £5000 of debts looking to take control of their debt issues. By providing us with details of your incomings and outgoings we can suggest the most appropriate way forward for you.
Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.
Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.
Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.
Our Other Services
Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRCBusiness Debts
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Meet our qualified Scottish based team
100% Confidential advice
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
More on DAS
We can help you with...
If you’re a Scottish resident struggling with personal debts, there are a number of solutions available to you that can appease your creditors and put you on the path to financial recovery.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.