We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
For people in Debt in Scotland
Arwen
Posts: 171 Forumite
Anyone who is on a Debt Repayment plan with Payplan, CCCS or doing it themselves,should consider applying for a Debt Payment Programme under the Debt Arrangement Scheme. This is run by the Scottish Government and the Accountant in Bankruptcy .It is NOT Bankruptcy.
Interest will HAVE to be frozen by your creditors,your assets cannot be seized therefore your home is protected,creditors cannot take "diligence" eg enforcement action against you as long as you keep to the terms of the scheme and your debts are repaid in full.
http://www.moneyscotland.gov.uk/das/das_display.jsp;jsessionid=F2AA0A22C3E87D42F3CBC371A79F13D7?pContentID=92&p_applic=CCC&p_service=Content.show&
The advantages are; your debts are repaid in full,your home is protected,and if you have a wage arrestment (you can only have one,not a conjoined arrestment,or you won't be eligible), this wage arrestment can be lifted.
Disavantages are :your credit rating will suffer.If the scheme fails, you could be bankrupt,you may still get contact from creditors who are not fully aware of the scheme.You need the majority of your creditors to consent.If they do not reply within 21 days of the documents being issued seeking their approval,they will deemed to have consented anyway.
Othere things to note that,it is difficult,though not impossible, to have a scheme approved if it will take more than 10 years to repay your debts.The legislation and guidelines say "fair and reasonable" so each case will be decided on it's own merits.
I have heard of people who haven't defaulted on any of their payments for loans/credit cards, and using it as a consolidation loan,interest free.Suppose it is ok,if they remember that their credit file will be shot.
I have posted a link above to the website.You need a money advisor who is full trained to set one up and has been accredited by the DAS administrator.Names are on the link above.They all work in the free advice sector.
Hope this helps someone.
Interest will HAVE to be frozen by your creditors,your assets cannot be seized therefore your home is protected,creditors cannot take "diligence" eg enforcement action against you as long as you keep to the terms of the scheme and your debts are repaid in full.
http://www.moneyscotland.gov.uk/das/das_display.jsp;jsessionid=F2AA0A22C3E87D42F3CBC371A79F13D7?pContentID=92&p_applic=CCC&p_service=Content.show&
The advantages are; your debts are repaid in full,your home is protected,and if you have a wage arrestment (you can only have one,not a conjoined arrestment,or you won't be eligible), this wage arrestment can be lifted.
Disavantages are :your credit rating will suffer.If the scheme fails, you could be bankrupt,you may still get contact from creditors who are not fully aware of the scheme.You need the majority of your creditors to consent.If they do not reply within 21 days of the documents being issued seeking their approval,they will deemed to have consented anyway.
Othere things to note that,it is difficult,though not impossible, to have a scheme approved if it will take more than 10 years to repay your debts.The legislation and guidelines say "fair and reasonable" so each case will be decided on it's own merits.
I have heard of people who haven't defaulted on any of their payments for loans/credit cards, and using it as a consolidation loan,interest free.Suppose it is ok,if they remember that their credit file will be shot.
I have posted a link above to the website.You need a money advisor who is full trained to set one up and has been accredited by the DAS administrator.Names are on the link above.They all work in the free advice sector.
Hope this helps someone.
Debts :Paypal £1981.32
Monzo Loan £4278.16
Virgin CC £2137 0% until Dec 23
HSBC £5471.01 0% until Feb 2025
Emergency pot £404.47/2500
1p Savings Challenge £1.45/660
52 week Savings: £22.00/1400
Monzo Loan £4278.16
Virgin CC £2137 0% until Dec 23
HSBC £5471.01 0% until Feb 2025
Emergency pot £404.47/2500
1p Savings Challenge £1.45/660
52 week Savings: £22.00/1400
0
Comments
-
Couldn't agree more! I really do think that anyone in Scotland who has debt should look at DAS first before considering anything else (I know it won't be right for everyone, but I think it's well worth checking it out).
Just one thing though - nearly all of the advisers look like they work for CAB or councils, but there's at least one insolvency practitioner in there. and the website itself says:
"This service is often free, but some money advisers may charge you for their services".
So it's probably worth asking 'do you charge anything for this?' before you sign anything!
(I'm being over-cautious here - like I say most of the advisers look like they're from the free sector).
0 -
Couldn't agree more! I really do think that anyone in Scotland who has debt should look at DAS first before considering anything else (I know it won't be right for everyone, but I think it's well worth checking it out).
Just one thing though - nearly all of the advisers look like they work for CAB or councils, but there's at least one insolvency practitioner in there. and the website itself says:
"This service is often free, but some money advisers may charge you for their services".
So it's probably worth asking 'do you charge anything for this?' before you sign anything!
(I'm being over-cautious here - like I say most of the advisers look like they're from the free sector).
IIRC-the advisor on the Insolvency site doesn't work for them anymore, but I would agree check that they don't charge. The free advice sector do not charge. They will check that you are suitable for a DPP before they apply for it or not.Debts :Paypal £1981.32
Monzo Loan £4278.16
Virgin CC £2137 0% until Dec 23
HSBC £5471.01 0% until Feb 2025
Emergency pot £404.47/2500
1p Savings Challenge £1.45/660
52 week Savings: £22.00/14000
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards