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Similar to trust deeds, the Debt Arrangement Scheme (DAS) is only available to residents of Scotland. Those residing in other parts of the country may wish to investigate solutions such as an IVA.
Under the scheme, as well as making payments to your lenders, interest rates are frozen and these groups are prevented from taking legal action against you. Although we cannot assist in the setting up of the Debt Arrangement Scheme, we can advise you on how to best get on top of your finances.
To qualify for the Debt Arrangement Scheme, you should have more than one creditor and live in Scotland. Furthermore, you:
However, if you are already undergoing a form of insolvency – such as bankruptcy or protected trust deed – you would not be eligible for the service.
A Debt Arrangement Scheme has several advantages over other financial solutions. For example, a DAS generally allows you greater control of your assets. This means, in many cases, you won’t need to sell your home or car.
Furthermore, as interest rates and charges are frozen during the scheme, your debts should be cleared once the DAS ends.
What differs between individuals, however, is the length of the policy. As it allows you to clear your debts in a “reasonable time”, the advisor in charge of implementing the scheme will identify how long this should be.
Once the time frame has been agreed, affordable monthly fees will need to be paid. Yet, if this is temporarily affected – such as in the case of redundancy – you can apply for a payment break to compensate.
The Debt Arrangement Scheme is just one solution for regaining control of your finances. As this must be set up by a qualified professional, you will need to get expert advice before proceeding with your application.
Contact us and we’ll be happy to discuss your circumstances. With no obligation on your part, we can evaluate your financial situation and recommend a solution which is right for you. To start getting on top of your debts, contact us through the button below:
The Debt Arrangement Scheme will have a negative impact on your credit report. Although your score may be low already, details of the scheme will be active on your file for at least six years from when you agreed the policy.
During this time, you will find it hard to obtain loans or other financial products.
There are several advantages to the Debt Arrangement Scheme. For example:
There are several disadvantages to the Debt Arrangement Scheme. For example:
There is no definitive end date for the Debt Arrangement Scheme and, ultimately, it ends when your creditors are paid. Generally, you should expect it to last for no longer than 10 years.
Debt write off applies to unsecured debts and on completion of an IVA. A debt write off amount of between 20% and 80% is realistic, however the debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors.
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Free money help and advice can be found at the MoneyAdviceService.org.uk