Debt Arrangement Scheme

Bugalugs

Hmm, I asked a question in the DRO thread/sticky a couple of days ago but have just realised (after further browsing) that as I live in Scotland I can't get a DRO.
Is a DAS the same as a DRO? Do you pay a set amount for 12 months and the debts (mine are less than £15,000) are effectively 'wiped' and off your file after 6 years?

curly04

No sure as not from scotland but I love your signiture
x

billybraggtastic

Bugalugs wrote: »

Do you pay a set amount for 12 months and the debts (mine are less than £15,000) are effectively 'wiped' and off your file after 6 years?

The general format for a DAS follows a process to pay off your debts in full over a longer period of time (in my instance 93 months) via set monthly payments. No debts are written off.

Your creditors will receive 90% of their money with 10% being retained by your Money Admistrator.

There are a couple of adavantages to a DAS
1. Interest and Charges are frozen for the duration ie if you £15k today you pay off £15k by the end of the process
2. You are protected from your creditors taking legal action to recover their money - particularly advantageous if you have assets/equity you wish to hold onto.
3. While your credit rating is affected it is not as damaging as bankruptcy/insolvancy (there are other posters who can provide a better insight on this point).

Hope this helps.

BBT

Bugalugs

billybraggtastic wrote: »

The general format for a DAS follows a process to pay off your debts in full over a longer period of time (in my instance 93 months) via set monthly payments. No debts are written off.

Your creditors will receive 90% of their money with 10% being retained by your Money Admistrator.

There are a couple of adavantages to a DAS
1. Interest and Charges are frozen for the duration ie if you £15k today you pay off £15k by the end of the process
2. You are protected from your creditors taking legal action to recover their money - particularly advantageous if you have assets/equity you wish to hold onto.
3. While your credit rating is affected it is not as damaging as bankruptcy/insolvancy (there are other posters who can provide a better insight on this point).

Hope this helps.

BBT

Thanks for the heads up. I'm currently paying back debts through Payplan (and have been since 2004). When I started I was on a higher wage and my monthly surplus was £180. Now, due to redundancy and a much lower wage my 'surplus' is £50.10 but this will be ongoing until 2026. It's just really starting to get me down. I'm assuming, (perhaps wrongly) that I won't be able to get a mortgage until then or even after that - something that didn't worry me when I was running up the debts as a student but now at the grand old age of 34 2026 seems like an awful long way away and very late in life to get a foot on the property ladder! There are other stresses, not just getting on the property ladder, but when I read about DROs it seemed like a lifeline other than Bankruptcy.