Frequently Asked Questions

There are no setup fees to enter into the Debt Arrangement Scheme. But, there are also no ongoing monthly management fees payable by an individual entering into the DAS. This is the same for all individuals whether they use a private sector firm (e.g. Harper McDermott Ltd) or a public sector organisation (e.g. CAB or local authority Money Adviser).

The costs of administering a debt payment programme are borne by the creditors i.e. from every £ received into the scheme, 22p is used to pay for the costs; this 22p is paid to the DAS Administrator (2p) and the Money Adviser (20p).

The remaining amounts are distributed amongst all creditors on a pro rata basis and a successfully completed DPP deems all debts to be repaid in full.

For more information on DAS fees call 0141 278 3989.

The Low and Grow Process (DAS) is a formal debt solution introduced in January 2021 that may help residents of Scotland who have experienced a loss of income due to the recent Covid lockdown restrictions.

The Low and Grow Process debt solution may appeal to those who are in a position to repay their debt over a longer period of time but require a short term solution in the intermediate period before their regular income returns to normal may be eligible to apply for a Low and Grow DAS.

The benefits and risks are the same as any other debt payment programme (DPP) undertaken as part of the Debt Arrangement Scheme.

When a person repays their debts through the Debt Arrangement Scheme, interest and contractual charges are frozen. The Debt Arrangement Scheme lifts wage arrestments; stops court action including Sequestration (bankruptcy in Scotland) and requires one monthly payment that is distributed to all creditors on their behalf.

When applying for a debt payment programme using Low and Grow DAS in Scotland, it is recommended that a minimum of 5% of the overall debt is paid for the duration of the discretionary condition period of lower payments, or a minimum of £35 per month, whichever is lower.

You can find out more the advantages and disadvantages of DAS and alternative formal solutions such as Protected Trust Deeds by contacting our debt advice team.

Yes. Once your DPP becomes approved then by law any earnings arrestments currently in force have to be cancelled. Your continuing money adviser will ensure that this happens for you.

A continuing money adviser will act for you throughout the course of your DPP, liaise with your creditors, carry out an annual review, process variations and generally be on hand to provide advice and guidance to you until the DPP is completed. The legislation governing DAS outlines the criteria to become a continuing money adviser. The Insolvency Practitioner at Harper McDermott qualifies to act as a DAS approved money adviser.

The fair & reasonable test is the criteria that the DAS Administrator uses when deciding whether to approve or reject a DPP application. It will take into account factors such as the total period of time that the DPP will last and the extent to which creditors have consented. If your continuing money adviser thinks that your proposals are unlikely to pass this test then we would advise you of this before you sign up and would discuss other alternative options with you instead.

Following contact with Harper McDermott and having received initial advice, with your approval, one of our insolvency practitioners will act as your continuing money adviser and will then make a DPP application on your behalf. Your adviser will provide more details following your initial contact.

No. Your home is not affected. DAS was brought in by the Scottish Government so that people could have access to a safe way of paying back their debts without any risk to their homes. In fact, DAS should make it much less likely that you would lose your home as it should be easier for you to afford your mortgage / rent payments and therefore reduce the risk of you defaulting. Moreover, you cannot be sequestrated (made bankrupt) by your creditors once in an approved DAS DPP, which would otherwise put your home at risk.

No. You would make a single payment to an approved Payments Distributor, who would distribute this between all of your creditors for you. As long as you stick to your side of the agreement, your lenders wouldn’t be able to take any action against you. If you are still getting contact from creditors after approval of your DPP then you would inform your continuing money adviser who would then get in touch with them again on your behalf to stop this.

No. Couples who are spouses/civil partners, or living together as if so, may apply for a joint DAS DPP. A joint application can be made regardless of the existence of joint debts.

As long as you maintain your repayments under the finance agreement then there should be no reason that you would have to give up your car.

This is a public register which anyone can access free of charge provided they have your full name and DAS case reference, as well as the trading name of your business, if applicable, and lists individuals or couples that have applied under DAS, intimated that they intend to apply or have an approved DAS DPP. It would include details of your name, date of birth and home address.

A Scottish Government official (The Accountant in Bankruptcy), who oversees the administration of every DAS DPP, is responsible for maintaining the DAS Register and responsible for approving DPPs, Money Advisers and Payments Distributors. Their costs are met by your creditors.

Yes it is likely to do so. If you participate in DAS then your details are recorded on the DAS register. Creditors and credit reference agencies check this register regularly and may update your credit file to reflect this information. You are also defaulting on your original contractual agreements with creditors so they may mark these defaults on your file.

It will often be possible to continue to use your existing bank account, however in certain circumstances you may need to switch to a new bank account provider – particularly if you have an overdraft or if you owe money to your bank that is being included in the DAS.

Yes. It freezes interest, fees and charges from the date you apply for your DPP. As long as you fully complete the DPP then these cannot be added back by your creditors.

It is possible that entering into DAS could affect your existing employment and prospects for future employment. If you are in any doubt then you should review your employment contract and/or speak confidentially to your HR department. If you are working in the financial services industry, police, armed forces, prison service, licensed HGV driver, Chartered Accountant or are a member of any recognised professional body then you should take further advice, this will be discussed by your adviser prior to you making an application for a DPP under DAS. This list of affected jobs/careers is not exhaustive.

No. Your car is not affected by entering a DPP. If you wish to clear your debts more quickly by selling/downgrading your car then you are free to do so, but there is no requirement for this.

We would not contact your employer (unless you asked your payment distributor in order to collect your payments directly from your salary).

A Debt Payment Programme (DPP) is a programme you would agree to under the DAS scheme. It sets out how much you are able to pay towards your debts each month, and how long you’d be expected to make those payments before the debts were cleared entirely.  The DPP is proposed to your creditors and once approved then your creditors are bound by its terms as long as you stick to the agreement.