Scottish DAS Question

Miss_Poohs

I mentioned before my DH has a DAS - which if he'd been honest about we might have managed to handle - but to be honest we're struggling.

What I want to ask is - being that the DAS is already 13yrs in length at £500 per month - if he isn't able to pay it, is he then able to opt for bankruptcy?

He really does want to repay his debts, but I can't see the DAS being altered to include even more debt - making it even longer, 13 yrs is already a bit of a stretch, and we couldn't afford any more that £500 a month.

I'd be very grateful of any advice.

Ta Jx

Miss_Poohs

Or - I suppose a Trust Deed may be an option?..........

Anyone?

kev1980_2

Hi Miss Poohs,

I'm currently in a Scottish Trsut Deed as recommended by CCCS.

Can I just say that both the Debt Arrangement Scheme Scotland and the Scottish Trust Deed scheme are fantastic ways to deal with debts.

If you want to go down the Debt Arrangement Scheme route you will end up paying £500.00 per month x 156 months (13 years) = £78,000

If you go down The Scottish Trust Deed route you will end up paying £500.00 x 36 (3 years) = £18,000

Seems a bit of a no brainer to me which route will be the best option for you to go down!

Do you own your own home?

Miss_Poohs

I just phoned the debt councilor this morning and a Trust Deed is no use to us because there is too much equity in our property.

So we will just have to stick out the DAS.

coolcait

Hiya Miss Poohs

The other problem with a Trust Deed right now is that - legally - you can't enter a Trust deed while you're on a DAS programme. You CAN make yourself bankrupt while on DAS.

There are a couple of problems with making yourself bankrupt though. The first one is that it might not be the best idea for you, if there is a lot of equity in your property. The second problem is that you might not be able to meet the requirements for going bankrupt. If you have property, you can't apply under Low Income Low Assets. So you'd need to have some proof of 'apparent insolvency' - like a charge for payment or statutory demand. If you haven't got that, then you wouldn't be able to go bankrupt.

I know that you laughed hollowly at the idea of a lump sum coming your way in a few years, but you never know (says Pollyanna!). At least if your OH is on DAS he gets protection from any action by his creditors. And, having managed to get onto it in the first place, it's probably worth trying to get it varied. You never know what will happen - especially if you don't have all the figures available. It might just work out.

Good luck with it all.

kev1980_2

Miss_Poohs wrote: »

I just phoned the debt councilor this morning and a Trust Deed is no use to us because there is too much equity in our property.

So we will just have to stick out the DAS.

Hi Miss Pooh's,

Nice to hear from you again!

I'm in the opposite position as I don't have a lot of equity in my property so the Scottish Trust Deed route is my best option as opposed to The Debt Arrangement Scheme.

My equity has been frozen at the time of signing the trust deed and i have 3 years to get the payment together. I'm doing lots of overtime at the moment although a condition of my trust deed is that i must hand over 50% of my overtime to my trustee, i guess its only fair for my creditors interests.

I investigated the DAS route before signing the trust deed and it would have taken me 8-9 years to clear the debt, with the trust deed scheme and my low equity I can clear my debt in 3 years :T :T

Coolcait is correct with regards to making yourself bankrupt as the equity in your house will still have to be released for the benefit of your creditors.

Miss_Poohs

Thank you everyone.

Its a real catch 22 for us.

Left up to me I'd put our house up for sale and opt for the bankruptcy route.

Not because I think it's an easy option, but because we only moved in here 18 months ago, and it's been bad news all the way since.

First my wee mum died, then I found out about my DHs secret money problems, then they discovered I had an ovarian cyst, which will need to be removed (roll on my op in January becasue the pain is murder) and 2 months ago my dad was diagnosed with prostate cancer.

2008 has been a memoriable year for all the wrong reasons - but as they say "life goes on"!!!

My DH feels strongly about paying all the money back, that and the fact he jointly owns his mums house too. If our house goes, then so will hers, and with the best will in the world, she's an old witch and I'd rather live in a tent then live with her. :rotfl:

DH is going to meet with our DAS man in the next week or so to try and add in the debt he tried to hide from me - so we'll see how that goes.

Apart from all that I'm fine :j

kev1980_2

Hey Miss Poohs,

Keep us and the thread up to date with how things goes.

Good luck! :money: