Debt Arrangement Scheme - Scotland

Suffol

Hi Confused
It may be that a trust deed could be the right solution for you - if you've got no equity, it certainly would mean that you'd be finished making payments sooner via a trust deed. However, there are definite down-sides, mostly because it is a form of insolvency which stays with you forever. But you need advice more than anything else, and you shouldn't be paying either for advice or for a DMP, if you decided just to go on dealing with your debts that way. Try your local council - most in Scotland offer free debt counselling services either through trading standards or through a specific debt unit. Alternatively citizens advice would be able to help you. CCCS are good, but tend not to recommend DASs first-off, at least not on their on-line debt remedy service, and if you're in Scotland a DAS is certainly something you should be considering. The up-side to a DAS is that it freezes interest and protects you from your creditors pursuing you for payment through the courts. If your council or citizens advice arrange it, it's completely free. Also, it isn't an official insolvency. The downside is that it can take longer, because none of your debt is written off as it would be in a trust deed. Or you could just keep plugging on with the DMP, but have it taken over by someone who won't charge you. If you've been paying two years, and the amount you owe hasn't gone down much, it sounds as if your DMP company aren't being very effective in getting interest reduced or stopped! Certainly don't go down the trust deed route before seeking further free advice - Gregory Pennington will be keener to line their own pockets than give you advice that best suits you!

hangingonbyathread

Suffol wrote: »

Hi, just to share my pleasure that my DAS has just gone through, despite some large amounts (total £90k), some awkward creditors (RBS had started going after an inhibition) - and an initial period of fifteen years! Out of the ten creditors, only two replied (accepting) during the 21-day period allowed, and the others didn't respond. It therefore went through on mostly 'deemed consent'. My local council money advisor was just fantastic, and the monthly payment for the first six months is entirely affordable. At the first review, I expect to be able to increase payments four-fold, and thereby shorten the DAS period to under five years.

At the moment I feel like I've been drowning and just thrown a life-belt - the relief that seven months hell struggling with a DMP is over is just massive, and I wish I'd gone straight for a DAS much sooner - but back then I didn't know enough to push for it. I can't quite believe how good a DAS seems to be, and expect some catch to reveal itself, but apparently not . If anyone's thinking about doing the same as me, do ask about anything - I now understand the process very well indeed.

Chris

Hi I am new to the forums,but I have spent many a sleepless night reading posts looking for some sort of hope.

everyone on here is so supportive and understanding,as you all know this can be a godsend when you have no one to talk to about your situation.

This is a shortened version of my situation,as its as complicated as it can get believe me if it could happen to anyone then it did to me last year.

I was self employed and no longer working as I stopped trading, I have been attending CAB since Dec 09, but have recently went to money advice at local council as I didnt feel I was getting the right advice for my situation.

I am desperate for a solution and after searching forums and looking at conflicting advice, I feel that DAS is the right option for me

one creditor has taken me to court to obtain an open decree as they refused payment plan, I have attended court twice and have to go back in a few weeks as I have to seek legal advice.(hard when you cant afford a lawyer who is prepared to fight a Brewery, one even said it wasnt worth the hourly rate he would get paid if I got legal aid to fight them !).

I will have by the time final figures come in have about 60 odd thousand pounds debt,split between around 15 different creditors

I am awaiting awards of benefits but I am looking for work so have no intention of staying unemployed if I can help it.

I will have roughly 200 and odd a month to go towards payments to start with and with intention to increase as I become employed again.I am prepared to take on three jobs if need be.

could you please let me know what difficulties you run into when trying to get the DAS approved, how did your money advisor get round this etc.

thanks in advance for your advice

billybraggtastic

Hi hangingonbyathread. I have gone down the DAS route and can perhaps highlight a couple of potential problems you might face.

1. There tends to be a consensus that a DAS should not run more than 10yrs (there are exceptions - so do not take this as gospel). With your present predicament ie receiving benefits it would seem unlikely to me that you would be recommended for a DAS as it would take you 25yrs to pay off (60k/£200 = 300mths) I know you hope to get back to work but I would expect your DAS proposal to reflect your current circumstance.
2. My Money Advisor (via local council) advised me that while a DAS offered protection from a creditor taking diligence upon me for my debts it did not halt existing action. You may have a problem therefor with the brewery.

There is a frequent poster Coolcait who knows the ins and outs of the DAS process - perhaps send a PM and clarity on the points I've made above.

As well as going to the Money Advisor, I contacted National Debt Line who offered great advice and guidance.

Hope you can work things out.

BBT

hangingonbyathread

Hi BBT

Thanks for the reply,

I think my money advisor was helping me to get on a DAS as I have been through the final stages of interiews and just waiting on an appointment.

But if this was to fall through just now, then we had worked out it would be roughly 17 yrs for the DAS at just under 300 pounds per month (think thats right)

I could afford this amount as benefits would include income support and carers allowance as I do not have alot of outgoings to speak off.

As for current court action I was told it does not affect any court action but it does stop creditors from acting on it i.e wage arrestment etc. (is this right ? )

I could go bankrupt or on a trust deed, but I recently split from ex (last year) and house was signed over to him as my share covered what he has put into the business. (I thought at the time i was still going to be running a business and building it up and did not want him looking for anything out of it when we get divorced later this year)

So going bankrupt or trust deed isnt an option as they would look at me signing house over to him, even though it was done in my best interest at the time. I would rather pay back debts till I die than have to keep looking over my shoulder for my ex.

Not everyone transfers equity to save it some have no choice if they want a peaceful and safe life.

I just wanted to know if others had similiar amounts of debt and were accepted for DAS what they had to go through to do it.

again thanks for the reply these forums have been great when I have been at my lowest jsut reading how some have managed to come out the other end and get on with their lives.

Thank you

Suffol

Hi - as you'll see from my previous posts, I owed more than you, and my DAS has been accepted even though it runs for 15 years just now - I hope to shorten it massively after my OH finishes training and starts earning again. If you have an experienced money advisor and some prospect that you'll be able to make higher payments in the (near) future - i.e. you aren't on disability benefits / retired / unlikely ever to work again - I think that the AiB will more than likely accept a 'good' case - maybe with the proviso that payments are reviewed more often than the standard annual review. You've nothing to lose by trying, anyway, and I guess that if the AiB has an issue, they make constructive suggestions rather than just 'bouncing' the application. Good luck with whatever you try to do, anyway!

ebargainhunter

Hi Everyone

This is my first post here ,need advice to arrange setting up a DAS , Should i go to my local CAB or try someone like Payplan ? I have learned a lot from this forum in what is new and murky waters for me so expect too here from me in the near future thanks .

Suffol

I'm not sure I'd go with payplan first-off if you're thinking about a DAS - try your CAB, or maybe better still your council's debt advice or trading standards unit. Whatever, the advice should be free - avoid anyone who wants a fee off you.

chipsmum

If you have a look on the following link, you will find a list of DAS approved money advisors. The CAB ones are free but I think some do charge for their services so best to check first.
http://www.moneyscotland.gov.uk/das/MoneyScotland/Homepage

Sososad

Hi everyone,

Ive not been on for a while dont want to speak too soon but all is quiet, i too am on a DAS and have been on one since January this year, was just wondering if anyone knows how much would companies be expecting for a full and final settlement, i plucked up the courage to tell my dad and he couldnt believe i never asked him for help, anyway, he is willing to help but obviously i dont want to be taking all his hard earned cash, we currently owe about 45,000.00 any thoughts ideas anyone?

Also, what if one company refuses does that mean i cant go ahead with it?

Thanks

Michelle32

Hi everyone I am in a lot of debt £30,000 on cards, catalogues overdrafts I have a joint mortgage and I think that the debt arrangement scheme would be a good option for me just waiting on my appointment with CAB wish me luck!

Mic