Do I qualify?
Here is an example of how a Debt Arrangement Scheme could make your debts affordable:
Let say your unsecured debts
looked like this...
Total Owed £28,000
After a DAS...
New monthly repayment is based on affordability and varies from plan to plan.
Visit our FAQ Section for any in depth information on Debt Arrangement Schemes
We are expert providers of Debt Arrangement Schemes. We offer free help and advice on debt solutions and can guide you in the right direction with regards to your debts.
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It all boils down to whether the A Debt Arrangement Scheme administrator stipulates a discretionary condition, which basically means they have looked at your Debt Payment Plan (DPP) and want you to fulfil certain additional conditions before they approve it.
These are all fairly straightforward and quite reasonable. However, when sent for approval, the A Debt Arrangement Scheme administrator could also make a discretionary condition on your DPP, which could involve the sale of assets they deem ‘non-essential’.
Essential assets are those you require for day-to-day living or to generate an income necessary to make payments. The key term in the A Debt Arrangement Scheme rules about essential assets is that they are ‘reasonably required” and these would include:
Items such as furniture, cooking, cleaning and laundry equipment, computers, televisions and recording equipment are exempt. Your home is also considered an exempted asset, so under A Debt Arrangement Scheme you will not lose your home, be deprived of the means of working or living on a day-to-day basis.
During your initial assessment and debt counseling, your money adviser will list your assets and make an initial valuation of them. In some cases they will require receipts if you have them, but often they will use price guides and any information you provide. Non-essential assets could include additional cars that you own besides the one you use for work or business, or perhaps an expensive model of car that you own outright which could be sold for a less expensive model. Lifestyle assets like second homes could also be included.
There is always the risk that the A Debt Arrangement Scheme administrator will want some of the value of these non-essential assets to be released, as this may be deemed to be the fair and reasonable course of action to satisfy creditors who have agreed to extend your payment term.
Whether or not your Debt Payment Plan gains approval will depend upon you agreeing to the discretionary conditions the A Debt Arrangement Scheme administrator requires. If you believe the discretionary conditions requested are not fair, you have the right of appeal and can request the Sheriff’s office review your case. However only one appeal is possible so if the Sheriff upholds the discretionary conditions, to go forward with your DPP means you have to accept them.
For more information about discretionary conditions and A Debt Arrangement Scheme, call to speak in confidence to one of our A Debt Arrangement Scheme consultants who will talk you through your options and point you in the right direction.