Debt Arrangement Scheme - Scotland

billybraggtastic

In a debt arrangement scheme (Scotland) is your house protected - ie can your house forcebly be sold to pay off any part of your debt?

Miss_Poohs

Hi Billy - my OH is in a DAS too.

My understanding is that once you have been accepted in a DAS, and you are current in your payments you are protected (from the creditors mentioned in your DAS) from any further action to pay off the debts.

However if you have debts with A,B + C covered with your DAS, and a further debt with Z (not included in the DAS) they have free reign to pursue their debt with you.

Not sure about the house part - certainly theres no security over your property with a DAS.

Does that answer your question?

billybraggtastic

Thanks Miss Poohs - you've answered in part but also lead onto a different question.

- Could an application for a DAS be rejected due to there being enough equity in my property to cover my debts?

Another thing is the Debt Z scenario, My problem stems from my failed business and Personal Guarantees being recovered. At present there are 3 PGs that have not come forward but may do so in the future. If I have a DAS in place would I have an opportunity to add these in future if they present themselves?

Miss_Poohs

'Morning Billy!!

I'm guessing if your DAS fails and your creditors pursue the debts them yes your property could be fair game.

I'd have to say no the DAS wouldn't be rejected if your home didn't have enough equity. The DAS is based on your ability to pay from any money you have left over once all your essentials are paid.

The Z senario happened to my other half. He had his DAS up and running, then decided to come clean about yet a further CC he couldn't pay. He, or rather I, contacted our debt counsillor and he was able to make an adjustment ( the term used for this is a variation) with the DAS to allow this to be added.

Have to say this was touch and go though, mainly because my OH DAS was already for a sunstantial debt, running for a period of 12 yrs!!!

So I wouldn't bank on that solution always being acceptable.

I'm not familiar with the PGs your are refering to, all my husbands debt was personal debt.

Have you spoken with an advisor yet? It has to be a specially trained DAS advisor who puts your plan together then it goes to the AiB who has the final say on it being implemented - or not.