DAS/DPP questions

scot23

Hi, sorry if uve read this before but am starting a new thread for das/dpp as I’m aware things are slightly different in Scotland. Any advice on das/dpp process would be very great fully received. Hoping I’ve posted in the correct place.

Hi all, have read a few post and the advice and support here is fab, already feeling more positive about my horrendous situation! I’ve been in contact with Step Change this week and going to get ball rolling with a DAS/DPP. Have printed out their letter to send to my creditors. Do I also send this to bank with my current account and overdraft? My letter says that I’ve recieved advice from SC, I am in financial difficulties and that SC will be in touch. Is that enough? Should I ask for a 30 days ‘breathing space’ for my account or is this automatically assumed? Also can I ask to only be contacted via post/mail? (Will have to hand write extra at bottom as the letter is already typed and printed out- would this be ok?).

Slightly worried about 1 of my loans (it’s with creation) who states : During the currency of this agreement you should not suffer any bankruptcy petition to be presented against you, or execution to be levied against any of your assets, nor shall you enter into any arrangement or composition with your creditors without our express consent.
Also says the balance of the total amount payable shall be immediately due and payable after expiry of proper notice if: you cancel direct debit or fail to pay instalment. Is any of this relevant to me looking into Das/dpp. Am I over thinking things? I’m about to cancel my direct debits so won’t be paying loan payment at end of jan! (But they should have received my letter by then!) Just very worried about people turning up at front door!!! And all the missed payments that will have occurred before the das/dpp is up and running! Also are many das/dpp applications rejected? Am sure I will have so many more questions but thanks so much for reading.

sourcrates

Hi,

We don`t really deal with the scottish solutions very much on this forum, but a DAS/DPP is a cross between an english debt mangement plan and an IVA, its basically a DMP with legal protection from your creditors.
Ignore what various creditor websites say, its just standard wording, all your debt is non priority unsecured borrowing, so all can go into your arrangement, you don`t need to tell your creditors anything, they will receive the paperwork from stepchange in due course, if you bank where you have debts, then you will need another basic bank account, i suggest you make that your first priority.

No one will turn up at your door, you give them far too much credit, and are way overthinking things, debt collection can take many months, even years, the few weeks you will have of non payment won`t even be noticed, you may get some calls, or even a letter, knocking on doors is a few years down the line away yet, which won`t happen anyway, as you have a solution all ready to go, so happy days, your all sorted, just the new bank account to find.


And yes, under new GDPR regulations you can request contact in whatever form you prefer.

scot23

Many thanks for your reply. Have sorted account with Monzo and salary should go in that at end of Jan. Have printed off letters and will post them on Monday. Cancelling direct debits today too. Was hoping to have a few months to build emergency fund but I guess as soon as I submit paperwork to step change that will start application process (21 days for creditors to agree- or not and then first payment due within 42 days). Wondering if I should hold off paperwork (to sc) for a few weeks and use the 30 breathing space? Does that make sense? Thanks

sourcrates

scot23 wrote: »

Many thanks for your reply. Wondering if I should hold off paperwork (to sc) for a few weeks and use the 30 breathing space? Does that make sense? Thanks

Yes it makes a lot of sense, its essential to have an emergency pot saved whatever kind of debt solution you may choose, hold off a long as you can, creditors won`t do anything for months.

coolcait

scot23 wrote: »

Many thanks for your reply. Have sorted account with Monzo and salary should go in that at end of Jan. Have printed off letters and will post them on Monday. Cancelling direct debits today too. Was hoping to have a few months to build emergency fund but I guess as soon as I submit paperwork to step change that will start application process (21 days for creditors to agree- or not and then first payment due within 42 days). Wondering if I should hold off paperwork (to sc) for a few weeks and use the 30 breathing space? Does that make sense? Thanks

Hi and welcome

I don't think it will be as quick as that. Even if StepChange start working on your case as soon as they get the envelope (and that's probably not realistic given the number of people they're dealing with) they still have to confirm the debts.

That usually takes three or four weeks at least. Then the application goes to creditors and they have 21 days to agree.

If they don't reply, they're deemed to agree. If they all agree - or if the creditors who reject it are owed less than 10% of the debt - it will be approved automatically (the bit about 'less than 10% of the debt' is new - started on 4 November 2019).

If any of them reject it, then the DAS Administrator will decide if it's 'Fair and Reasonable' and will approve it if they think it is. Even if it is rejected you can ask for a review of that decision.

I think that about 96% of all DPPs are approved, but I can't remember where I got that stat - might have been an AiB factsheet. The point is that it's far more likely to be approved than rejected, so try not to worry about it too much.

Don't forget that you don't have to pay all of your surplus income to the DPP. You can make a payment offer which is less than that. That might also help with being able to build up an emergency fund. Do you know what your total debt is, and your surplus income?

Finally, like you said, once the DPP is approved you have six weeks to make your first payment.


TL;DR - it takes longer than you think to get a DAS set up and reach the point where you actually start paying it. Probably about 12 weeks at least.

IndyScot2020

I applied to go on DAS in March 2015 if I remember correctly but it didn't get approved and up un running for first payment until I think June 2015. Just ignored the missed payments letters as advised by my DAS money adviser.

Something you might want to keep in mind is that while there is lots of DAS guidance and rules out there that often get amended each year, creditors will often have their own interpretation of the rule. In my case two of my five creditors said it was not their policy to apply a default to debtors with a DAS account. The other three creditors said defaults must be applied. I guess you are understandbly more focused on the strategy to enter a DPP - but don't forget think about an exit strategy - do you want your credit file to show defaults (sometimes they are useful as they will disappear from your credit file after 6 years)?

You may have options also to not put some debts into the DAS - when I joined the DAS I was told I had to put all my accounts in, including my main current account (with small overdraft) and what was later found-out to be a unenforceable debt (found out after a CCA check). I think the new rules ever so slightly more flexible allowing certain debts to be excluded