DAS scotland ?

GOLFER

Afternoon

I am currently in about £50000 unsecured debt. Split between loans and credit cards. At the moment i cant make minimum payments and was I am about to apply for a Debt Arrangement Scheme.

However I am about to split up with my wife and need to move out ASAP. Hopefully when the house goes probably sometime next yeear there will be some equity to split between us. Maybe about £30000.00 each.

Should I postpone the DAS until the house gets sorted and just make token payments to my creditors and hopefully make F+F settlements when the house sells or should I go ahead with the DAS. Will it have the same affect ie credit file trashed and no mortgage or anything for 6 years. or would one be better then the other.

thanks

Golfer

Ineedaname

Hi there, I think you may get more responses in the DRO/IVA board, guessing they advise on DAS in there as it's similar to an English IVA. This board is really for BR discussion.

coolcait

DAS is actually like a Debt Management Plan, but one which legally binds your creditors to accepting the agreed payment; makes it illegal for them to take court action against you, and generally gives you the legal protections which DMPs don't have. (It also legally binds you to keeping your side of deal)

It's not insolvency. It's not equivalent to IVAs (Protected Trust Deeds are a closer equivalent). It's not equivalent to a DRO either. It's certainly not bankruptcy.

It probably fits best on the Debtfree board. However, because it is a uniquely Scottish approach to Debt Management, and most people (including creditors!) know very little about it, DAS threads tend to pop up on a few boards.

OP, have you spoken to a money adviser about your options? If you haven't, I'd recommend that as a first step.

I would say that if you can only make token payments, DAS probably isn't the right move for you. But, a money adviser will be better placed to point you in the right direction.

good luck!

GOLFER

I would say that if you can only make token payments, DAS probably isn't the right move for you. But, a money adviser will be better placed to point you in the right direction.

good luck![/QUOTE]

What i meant was that would i be better etering the DAS until my house sale came through to make F+F settlements, or would it be the same if i made token payments then offered F+F settlements.

would the effecton my credit rating be the same which ever way i went.

I would be able to pay more into the DAS but I wanted to know which way would crush my credit rating the worse????

tigerfeet2006

Unfortunatly as we are not privy to all the in's and out's of your income, debts etc. we can not say yes do this, no do that. You need to take proper advice and once you have been advised on the proper course of action for your circumstances we can help and support and answer any questions you have on the process (well our wonderful contingency of Scottish posters can )

Information for those in Scotland.


Advice on bankruptcy.

• Consumer Credit Counselling Service (Scotland) - Website: CCCS Telephone: 0800 138 3328
• National Debtline (Scotland) - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline Scotland - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

.
.
Accountant in Bankruptcy (equivalent of the English Insolvency Service).

Main website: www.aib.gov.uk

For general queries about insolvency (but not debt advice) you can contact: General helpline - Tel: 0845 762 6171 - Email: [EMAIL="Helpline@aib.gsi.gov.uk"]Helpline@aib.gsi.gov.uk[/EMAIL]

Bankruptcy

Low Income Low Assets.

Debt Arrangement Scheme

Trust Deeds


Bankruptcy after 1 April 2008

• DAIP - Debt Advice and Information Pack
• Debtor's Guide
• Creditor's Guide
• Bankruptcy Restriction Guide
• Trust Deeds Guide

Polly_Wolly_Doodle

Hi Golfer,
Think you need to do your sums, how long would your DAS run for and actually would you get approved for one if your income is very low.
How realistic is it that your house will sell and your profit will be that amount?
A DAS money advisor can help you answer those questions and if a better option can negotiate token payments until you can offer the F&Fs.
Either way your credit rating won't look pretty but can be repaired over time. I suppose you need to think about what you want post DAS / F&F, are you thinking of credit for a new house or just a mobile phone etc.
Good luck and keep us posted.

GOLFER

Polly_Wolly_Doodle wrote: »

Hi Golfer,
Think you need to do your sums, how long would your DAS run for and actually would you get approved for one if your income is very low.
How realistic is it that your house will sell and your profit will be that amount?
A DAS money advisor can help you answer those questions and if a better option can negotiate token payments until you can offer the F&Fs.
Either way your credit rating won't look pretty but can be repaired over time. I suppose you need to think about what you want post DAS / F&F, are you thinking of credit for a new house or just a mobile phone etc.
Good luck and keep us posted.

I have discussed wuth a money advisor. i reckon i would be able to pay £375 per month.

Hoping to increase this each year. at the outset it would take around 10 years to pay off. Whats the likelyhood of creditors accepting 50% F+F if the house sells.

I think the DAS (if accepted) is the way to go untill the house sells.

Polly_Wolly_Doodle

Morning Golfer,
If you have £50k of debt and that crystalises in the DAS then at £375 it would take 11 years to pay off, so given that the guidelines are around 10 years max DAS then they should approve you, especially if you can show your payments will go up to take your term down.
I'm not sure what the rules are once you are in a DAS and then offer F&Fs (could you manage 50%, have you thought about divorce fees and deposit to rent a home etc?) but obviously you would be then coming out of the DAS protection and at the mercy of the creditors again.
Technically you are insolvent aren't you, £50k minus £30k equals insolvent, did the money advisor mention bankruptcy? Would 3 years of an IPA and another 3 of waiting to repair your credit work out quicker than DAS / F&F?
Oh another question (as much for any wise debt advice people here) if you are earning will creditors accept F&Fs if they would get more back via a DAS? i.e. would they accept F&Fs from someone who is earning or are they more for people with no earnings but a lump sum redundancy / inheritance etc?

hattybee

You’d be expected to pay your creditors in full if you went for a DAS debt payment programme (DPP), unless there was a very good reason for not paying in full and your creditors agreed.
With a reasonable amount of equity in your house, you’d probably be expected to agree to pay over your share of the equity, when your house was sold. Otherwise your creditors probably wouldn’t agree to the DAS DPP.

GOLFER

hattybee wrote: »

You’d be expected to pay your creditors in full if you went for a DAS debt payment programme (DPP), unless there was a very good reason for not paying in full and your creditors agreed.
With a reasonable amount of equity in your house, you’d probably be expected to agree to pay over your share of the equity, when your house was sold. Otherwise your creditors probably wouldn’t agree to the DAS DPP.

Thanks for that info

The main reason I mentioned about spliiting up and selling house was that my partner didnt know about the debt. When she found out she left with the kids and said basically we would split. We have had time to talk and and I have told her about the DAS scheme and that i would be going down that road albeit taking a long time to pay off the debts.

So we have agreed not to split. So there will be no house proceeds and I think that is one of the benefits of the DAS that your house is protected as long as you keep up with the payments.

So hopefully I can afford to start at £375 per month and also putting anything extra towards the debt asd i get it. And hopefully increase the payments if im lucky enough to get any pay increases soon.(not had one for 4 years) so hopefully due one soon.

Thanls for you eplies and any other info would be appreciated

Golfer

hattybee

It’s possible your creditors might not agree to your DAS debt payment programme if they think you have a whole lot of equity in your house, which they could get their hands on if your house was sold.
If so, your money advisor should be able to advise on the best course of action.