Debt in Scotland - Scottish government to look at revising the Debt Arrangement Scheme (DAS)

Debt in Scotland - Scottish government to look at revising the Debt Arrangement Scheme (DAS)

At an insolvency conference earlier this week, Fergus Ewing the Scottish minister for community safety, spoke of revising the current debt arrangement scheme. DAS is the alternative solution to debt in Scotland as opposed to Trust Deeds, Sequestration or Debt Management.

Under the terms of the revision, if a person's disposable income drops by more than 50% due to a drastic change in circumstances such as a job loss, the individual would be entitled to take a payment holiday of 6 months.

Mr Ewing was quoted as saying: "DAS has worked but we needed to improve the system. Following feedback, we have agreed to make changes to simplify and streamline the process.

"The government has a duty to provide vehicles to help those in debt."

The Debt Arrangement Scheme (DAS) was introduced in 2008 as a way of helping Scottish individuals with debt in Scotland, a more formal arrangement than a debt management program but less severe as a sequestration. A DAS can help those who with Scottish debt who are ineligible for a Trust Deed (another debt solution created using government legislation that can be used to write off up to 90% of an original debt amount.)

A recent survey carried out by TrustDeedScotland.net recently concluded that there are individuals with debt in Scotland that are put off seeking debt help through the DAS and Trust Deeds as they fear that a change in circumstances will worsen their situation. It also found that debt collectors and lenders did not do their best to dispel this fear.

A spokesman for TrustDeedScotland.net advised "The news regarding the DAS revision is fantastic. I hope that this will put minds as ease.

It is understandable why some people worry about changes in their personal circumstances affecting their ability to repay debt and stick to formal arrangements. Redundancy levels are running high across Scotland, there is also the uncertainty generated with so many public service cuts. We will be monitoring this situation closely over the upcoming months."

If you are in debt in Scotland, you should look to try and deal with your situation as soon as possible. If you can speak to your lenders at an early stage, it may be possible to avert legal action and/or debt collection agencies. If you feel that you are in severe financial difficulties, you can seek help from a non-fee charging organisation such as the CCCS or call the National Debtline.

POST COMMENT

Understand Tax Problem Relief Methods for IRS Collection Procedures Such as a Government Tax Lien CC Brown Law – Maneuver to Rebuild your Credit after Bankruptcy Filling CC Brown Law – 341 Hearing overview Arizona Law on Accident Settlements for Minors CC Brown Law – Can I File For Bankruptcy Twice? CC Brown Law – Life after bankruptcy discharge – Rebuild your credit after bankruptcy CC Brown Law – Alternatives to Transfer Property Before Filing Bankruptcy CC Brown law – Bankruptcy Options While Unemployed CC Brown law – Handling the Emotional Effects of Bankruptcy CC Brown law – Outcomes of Missed Bankruptcy Payments CC Brown law – If I File for Bankruptcy, Will My Green Card Be Taken Away CC Brown law – Chapter -20 Bankruptcy CC Brown law – Plan before you file Bankruptcy