Debt arrangement scheme

This is a scheme introduced by the UK Government to give those with more than two debts help managing their debts, without having to go through the courts. Under a Debt Arrangement Scheme debt-payment programme you make a single regular payment to an approved payments distributor to pay off your debts over a period of time. The programme can be for any amount of money or for any reasonable length of time. If you keep to the agreed payments, your creditors cannot carry out enforcement action against you.

Debt Arrangement Scheme also freezes interest, fees and charges on your debt, from the date your Debt Arrangement Scheme approved payment plan is approved.

The arrangements must be made through a Debt Arrangement Scheme approved money adviser. You cannot apply directly. Before making an application for a Debt Arrangement Scheme debt payment programme, the approved money adviser has to check your Income & Expenditure, This includes all income, outgoings, priority and non-priority debts.

The money adviser will then send each creditor a copy of your personal Income & expenditure budget which shows your financial position and negotiate with each creditor your proposed payment offer.

If all your creditors have agreed ,this includes if they have not rejected the offer (because they do not respond) the debt repayment programme “DAS” is agreed automatically.

Once a debt-payment programme is in place your approved money adviser will review its plan every six months.

Debt Arrangement Scheme allows you to pay back what you owe, free from pressure of your creditors and threat of enforcement (diligence) or bankruptcy. If you keep to the agreed payments, you are protected from further action by the people you owe money to and interest, fees and charges on your debt are frozen, from the date of approval of a debt payment programme.

At the end of the agreed repayment time, you should be able to wipe the slate clean and start again.

Debt Arrangement Scheme is often free for people paying debts under an approved debt payment programme. However, some money advisers may charge a fee for their service. Check beforehand.

Your home may not be protected.

For more information on a Debt Arrangement Scheme please contact us today

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