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.
It will affect your credit rating
A DAS will affect your credit rating. Unfortunately, there’s no way to avoid this, although it’s likely your credit record is already being affected if you’ve missed payments on your debts. You may also struggle to source credit during the period of your DAS and there are restrictions on obtaining credit, as well.
Your lenders can also choose not to approve your DAS. However, if they do, your DPP will be automatically referred to the Scottish Government for a ‘Fair and Reasonable’ test. All this means is that the Scottish Government will look at the DPP and make an objective assessment of the DPP and determine whether to over-ride the objections(s) received.
Only unsecured debts are covered
Only unsecured debts are covered by a DAS, so any loans secured on your home or through hire purchase agreements aren’t covered and you would continue to pay these.
Don’t miss a payment
If you fail to make a payment under your DAS agreement without first applying for a variation (via your Money Advisor), you may find the DAS could be revoked and you won’t then be able to be discharged from your debts. It’s sometimes possible to arrange payment holidays, or to extend the timeframe of your DAS and you should contact your Continuing Money Advisor in the first instance to discuss such matters.