If you choose to enter into a DPP under DAS Scotland, the first steps involve your Money Adviser proposing the DPP to your creditors. A DPP under DAS is proposed to creditors.
- Proposals are sent to all known creditors giving them 21 days to accept or reject the proposal
- If no creditors reject the proposal, then the DPP is approved automatically
- If creditors reject the proposal and they are owed up to 10% of the total debt, then the DPP application will be automatically approved
- If one or more creditors reject the proposal and they are owed more than 10% of the total debt, then the DPP can still be approved if the proposal is judged to be ‘fair and reasonable’ by the DAS Administrator (the Government agency responsible for DAS)
- If the DPP proposal is not approved, then you have a right of appeal, however, you may need to consider other solutions such as a Protected Trust Deed or Sequestration.