Debt Arrangement Scheme

The Debt Arrangement Scheme offers individuals who live in Scotland and have more than one debt the opportunity to repay all their debts at an affordable rate via a Debt Payment Plan (DPP). Sole traders with business debts can also access a DPP.

You must speak with a DAS Approved Advisor to get advice and assistance with a DPP, and they will do all the work on your behalf.

If you have spare income after your essential household expenditure is met, this would be offered to your creditors on a pro-rata basis until the debts are paid in full. This may mean paying debts over a longer term than was originally agreed (usually up to a maximum of 10 years). Proposals are sent to your creditors offering them new repayment terms and they have 21 days to respond. If the majority of your creditors agree, your DPP will become approved and you are protected from any further creditor recovery action, your creditors cannot add any further interest or charges to your accounts and any assets you have are completely protected, particularly your home.

Advantages of the debt arrangement scheme:

  • Once the DPP is approved, as long as you maintain agreed payments, your creditors cannot take any debt recovery action and must stop adding interest and charges to the balances.
  • Your assets are not taken into consideration with this option so homeowners, for example, are protected as long as mortgage/secured loan payments are maintained
  • You make only one monthly payment via an approved payment distributor who then pays each of your creditors

Disadvantages of the debt arrangement scheme:

  • Your credit rating may be affected for the duration of your DPP
  • If the majority of your creditors object, the DPP may not become approved

Find out more about the debt arrangement scheme

For all you need to know about the debt arrangement scheme, please contact us for some free, no obligation help and advice.

Campbell Dallas Debt Solutions - if you have debt problems, we have debt solutions.

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