Debt Arrangement Scheme TV advert
The Accountant In Bankruptcy (AIB) is responsible for the Scottish debt solution the Debt Arrangement Scheme. The debt solution enables somebody to repay all of their debt over a longer than agreed period of time. The TV advert promotes the Debt Arrangement Scheme which can be provided for free or by a for profit company.
DAS Scotland TV
There is a Debt Arrangement Scheme advert from the Accountant In Bankruptcy (AIB) being shown on STV from the 21 February 2012. The advert explains that a Debt Arrangement Scheme will help you by protecting any property you own, freezing interest and charges. The Debt Arrangement Scheme is a formal debt solution.
Your creditors have to accept your proposal for it to proceed. If your creditors don't accept your proposal then the AiB can apply the Fair and Reasonable test. This test decides whether your proposal is sensible and likely to give the creditors back their money in a reasonable period of time. If it will, then the AiB can overrule your creditors. If your creditors don't vote then they automatically accept your proposal.
Despite the Debt Arrangement Scheme being administered by the Accountant In Bankruptcy, it's not a bankruptcy debt solution in Scotland. The Debt Arrangement Scheme helps you repay your debt over a sensible period of time and get you back on your feet.
Seeking Debt Advice
We would advise anybody looking for Scottish debt help to speak to a free debt advice company which provides a full range of debt advice. In some instances, the Debt Arrangement Scheme which is advertised on TV will be the best option but you should be provided with complete debt advice which covers all available solutions.
Each debt solution will have pros and cons attached to it
Where to get a Debt Arrangement Scheme?
There are lots of places you can get a Debt Arrangement Scheme. As a charity we always recommend the free services. You can pay a company to manage your Debt Arrangement Scheme however this can often cost up to £3,000 over the term of the debt solution.
You can seek debt help by calling Debt Support Trust on 0800 085 0226.
DAS Case Study
Janice who contacted Debt Support Trust was in a debt management plan for her £12,000 debt. She lived in Edinburgh and had been paying her debt for 3 years. When she contacted Debt Support Trust we reviewed her financial situation and it transpired that her debt had climbed to over £15,000. This happened because the debt management company had been taking fees of over £1,000. Also, the interest and charges on some of the debt was not frozen and this continued to increase over the 3 year period.
Janice owned her own house and had equity within the property of over £70,000. She was not aware that in a debt management plan this asset could have been at risk.
If Janice had been placed into a Debt Arrangement scheme then her house would have been protected and the interest and charges would have been frozen. Consequently Janice could have been on the road to becoming debt free with a Debt Arrangement Scheme, instead of accruing more debt.
A Debt Support Trust advisor helped Janice with her debt problem and supported her in getting a Debt Arrangement Scheme set up.