Scottish citizens have a unique opportunity to gain special treatment for their debts through a structured payment programme. The Scottish Government allows for similar protection from creditors that a bankruptcy provides, but without the extreme negative consequences.
A debt arrangement scheme, or DAS is government-approved solution to extreme indebtedness. Scotland only endorses one debt arrangement scheme, and the DAS is the only approved source for taking advantage of the benefits offered through a Debt Payment Program (DPP).
The DPP is a structured framework for repaying defaulted debts over an extended timeframe. The purpose is to allow those who might be able to avoid bankruptcy to do so through the special terms offered through the plan. DAS offers special protections to clients who are admitted and choose to make payments through a DPP.
Enrolling in a DAS does more than just help debtors avoid bankruptcy. It allows for the repayment of existing balances through more favourable terms. A DAS typically features common benefits that improve the chances of client success and creditor repayment. A few of the common benefits include:
An approved money advice service can facilitate enrollment into DAS. There is no fee for this service. While some solicitors also provide alternate plans for a fee, free enrollment is available through any approved money adviser.
A budget counselling session precedes enrollment. If the DAS is a recommended option, then proposals for a DPP arrangement are sent to creditors to request commonly approved benefits.
While the money adviser commonly files an intimation to creditors to notify a client’s intention to seek DAS protections, any debtor may file this request on their own if they choose. An automatic 6 week stay from legal action is a feature of the intimation, which could be crucial to a client facing insolvency and possible court action.
There is no cost to receive budget counselling or advice through the local Citizens Advice Bureau service. DAS participation also requires no fee. There are approved solicitors that may also provide access to the service but they will generally charge fees for their efforts. Creditors generally pay a small percentage from the monthly disbursement to cover the costs of the program so that clients may avoid having to cover fees they cannot afford.
The Salvation Centre in Camden works in partnership with the Cambria House, local council, and…
The Midlothian Council provides financial help to the poor, people on benefits, the jobless, or…
With the COVID-19 pandemic going on, many people have found themselves facing redundancy or the…
Hackney borough residents with an eviction notice or that are homeless can get help paying…
Rent deposit help is available in the Lambeth borough from a scheme that is run…
Government funds can help families or individuals pay for housing costs in Croydon. Using the…