What is a Debt Payment Plan under DAS?
A DPP is a Debt Payment Plan and the law which governs a Debt Payment Plan in Scotland is The Debt Arrangement Scheme (Scotland) (DAS) regulations and it’s a statutory debt management scheme, introduced by the Scottish Government, to help you to repay your debts.
A DPP under DAS is the only official government debt management scheme in Scotland.
- Allows you to pay off your debt(s) over time.
- Will take into account what you can reasonably afford to pay back to those you owe money to.
- There’s no limit on the level of debt or the repayment period in a DPP; it can last for any reasonable amount of time, dependent on the amount of debt you owe.
- Allows you to make one regular payment towards clearing your debts.
- Provides protection from creditors taking enforcement action to recover money you owe them (once Approved).
- Freezes interest, fees and charges on your debt, from the date of the application, to your creditors until the completion of your repayments.
Understand your options
Reduced or stopped contact from creditors
The unsecured creditors who agreed to the terms of your DAS cannot take any further action for recovery of their debt once your DAS is agreed.
The duration of your DAS will depend upon the level of your debt and the amount you can reasonable afford to repay to your creditors.
As an example, if you owe £7,000.00 and can afford £100.00 per month towards your debts, the DPP will last 70 months (£7,000.00 / £100.00 per month = 70 months [duration of the DPP]).
Only pay what’s affordable
Your income and expenditure is assessed against agreed guidelines called the Common Financial Statement and Scottish Debt Help’s dedicated team will help you to understand and to explain what you can and can’t include in your budget.
Property in a DPP
If you own your own home, rest assured. Your home is not included in your DAS. Just keep paying your mortgage as you would each month.
If you’re self-employed typically you can carry on trading without disruption to your business.
If you own a company or you are a sole trader, you can still carry on trading.