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A Debt Arrangement Scheme (DAS) is designed to help Scottish residents repay debts through a debt payment plan.
With a Debt Arrangement Scheme, you will be able to pay off debts over an extended period, whilst giving you protection from your creditors taking action against you.
Dependant on your circumstances, we may refer you to a Debt Arrangement Scheme provider. Once you’ve entered a DAS, all interest and charges will be frozen and your creditors will no longer be able to take legal action against you, providing you continue to follow your agreement and monthly payments.
If you find that your circumstances change during your agreement and you have a reduction in your income, it may be possible to take a payment break for up to 6 months.
After completing a debt assessment, if we find that an IVA is not a viable option for you, but a DAS could be suitable for you then we can refer you to one of our trusted partners who can work with you to get it set up.
*based on the percentage of debt forgiveness upon completion.
An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to repay a portion of your debts over time, but it does have an impact on your credit score and it will be difficult to obtain further credit whilst on an IVA. Once an IVA is approved, it is recorded on your credit report and will typically remain there for six years from the date it starts.
However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.
Once your IVA is complete you will get a fresh start to begin rebuilding your credit rating.
IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it. The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.
For free, independent advice, you should visit to Money Helper via their