Alongside Trust Deeds, the Debt Arrangement Scheme is a formal debt management solution that takes advantage of Scottish government legislation to offer individuals and businesses a way out of debt in Scotland.
Trust Deed Scotland recently reached a milestone of over 3,000 Trustpilot reviews and whilst most of those reviews were for the Protected Trust Deed solution, a growing number of those testimonials are also Debt Arrangement Scheme reviews.
The Debt Arrangement Scheme is a formal solution that is superior to an informal Debt Management Plan in many ways, however, we always recommend discussing your circumstances with a qualified money advisor in order to understand your circumstances and provide you with balanced debt advice that is tailored to your personal requirements.
Debt Arrangement Scheme reviews on Trustpilot
Michael wrote of his DAS Scotland experience:
“I watched an advertisement on the television for Trust Deed Scotland® and thought I would go to their website and see if they could help me with debt problems.
By filling in a simple form first on Trust Deed Scotland website I got the ok for contact to be made by phone to talk about all my debt options and how a debt agreement to my creditors can be achieved.
The people I have talked to at Trust Deed Scotland® are very good at explaining what the best options in my situation were.
Things are progressing ahead now step by step until an agreement is signed by all parties and hopefully take a big weight off my shoulders about my debts .”
Mags, who also entered into the Debt Arrangement Scheme through Trust Deed Scotland® on wrote on Trustpilot:
“This company has saved my life.
I didn’t know where to turn to .so kind and understanding of my situation and so easy to deal with. Trish was the first person I spoke to and she was great. Reassuring and so friendly.
I’m still paying my debts but interest is frozen and I’m paying what I can afford”
John, another client who entered into a DAS debt payment programme wrote:
“I cannot thank Peter enough for the help and support he gave throughout this process. Absolute first class.”
How do I apply to join DAS?
If you think that a debt payment programme through DAS might be the best option to help you with your debts, you need to get help from an approved money adviser such as Trust Deed Scotland. You cannot apply for a DAS by yourself.
As an approved money advisor, we have been authorised by the Accountant in Bankruptcy (AiB) to apply for debt payment programmes on our client’s behalf through DAS.
The first thing that an approved money adviser will do is to look at all your circumstances and help you to decide on the best debt repayment option for you.
Can I take out further credit in a DAS?
You can get up to £2,000 credit whilst you are in a debt payment programme under the terms of the Debt Arrangement Scheme in Scotland, unless you already owe £1,000 on debts which are not included in the debt payment programme.
You need to be able to afford the ongoing payments to repay the new credit on top of your agreed DAS payments. If you cannot, your debt payment programme could be revoked.
You are also permitted to get credit if one of the following special circumstances applies to you.
- You need credit because you are responsible for reasonable funeral expenses.
- You are also allowed to get credit if one of the following special circumstances applies to you.
- Your DAS Administrator approves your credit and your debt payment programme is varied to help you to repay the extra credit.
- You need credit for emergency repairs to your home.
- Your credit was taken out before you joined DAS and was part of a cyclical loan agreement.
- You incur a trade debt in the ordinary course of business.
You must tell the new creditor if you are in a debt payment programme currently and you get credit due to one of these circumstances. You will be expected to pay this at the agreed contracted rate. Your debt payment programme may be varied to take this into account.
Can I end my DAS early?
Your money adviser can ask creditors to accept less than the full amount of the money that you owed them when you started the debt payment programme.
This is called offering a ‘composition’. If all your creditors accept this, it will end your debt payment plan and you will have no more to pay. This option is available to repay your debts early in a DAS to individuals and to sole traders, but it is not available in a business debt payment programme.
An offer of composition can only take place after:
You have paid 70% of the amount that you owed when the debt payment programme started; and
You have made payments for a full 12 years (not including any payment breaks).
Your DAS money advisor will record which creditors agree to the offer of composition. If a creditor does not respond to the offer within 21 days, they will be added to those creditors who agree to the composition.
If all creditors (including those creditors who do not respond) accept the offer of composition, the money advisor will write to you to confirm that your debt payment plan has ended and they will tell your creditors.
But, if all of your creditors do not agree to the offer, your DAS money advisor can still arrange a composition and alter your debt payment plan.
They will take account of the agreements received and make a variation. Where a continuing money adviser is handling the administration of your case, they will write to confirm the result of the decision.
Apply to the Debt Arrangement Scheme
There are advantages and disadvantages to the Debt Arrangement Scheme, alongside the other main debt solutions in Scotland and you can get more advice on all solutions open you and apply for the Debt Arrangement Scheme by trying out our Debt Wizard tool. You can also call us on 0141 221 0999.