Increase Debt Arrangement Scheme, Is a Debt Arrangement Scheme for me Increase Debt Arrangement Scheme, Is a Debt Arrangement Scheme for me -
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Increase of Debt Arrangement Scheme

Uptake on people entering a Debt Arrangement Scheme continues to rise

The number of people opting to enter a Scottish government ran debt arrangement scheme known as DAS which is an alternative to bankruptcy has nearly doubled. The uptake rose from 440 people using this solution in the last three months in 2010 to 878 for the same period in 2011.

Within the same time period people filing for bankruptcy increased by a modest 5% in comparison from 2,501 to 2,615.

Fergus Ewing, Enterprise Minister cited the massive increase as clear evidence of people becoming more aware of the existence of the scheme. Mr Ewing made the statement when visiting Glasgow City Council's Money Advice Centre to launch a campaign publicising the scheme.

The scheme is administered by the government ran Accountant in Bankruptcy (AIB) and is an alternative to bankruptcy for many people who find themselves struggling with unmanageable debts.

Under the debt arrangement scheme all interest and charges are frozen ensuring the level of debt does not continue to rise. The scheme also ensures creditors cannot enforce debt recovery action which in turn safeguards people's homes so long mortgage payments are maintained.

Fergus Ewing commented: "DAS is a way for people who are struggling to pay back their debts, to freeze their interest payments and charges, protect themselves from legal action and give themselves longer to pay. Rather than juggling several payments, they make a single regular payment to one organisation." DAS is the only government backed scheme to do this and it all

ows hard pressed families to take control of the situation before it is too late.
"AiB's recent work to raise awareness of DAS and its benefits for debtors and creditors has been reflected in the recent increase in take-up for the scheme. It offers a sensible option for Scots who are finding it difficult to keep on top of their debts but want to avoid bankruptcy. We have seen a 100% growth in the number of people using the scheme between the third quarter of 2011-2012 and the corresponding period last year. I welcome this increase and would encourage others who are struggling with debts to use the scheme to take control".

Under a DAS arrangement scheme people are allowed to repay their debts over a reasonable period of time. The amount of money repaid towards debts is based on the amount of debt and how much the person can afford after completing an income and expenditure form. Within the scheme creditors will receive at least 90% of their money back over the length of the solution.

Debt Arrangement Scheme Scotland

The Debt Arrangement Scheme is available to people with debt problems and living in Scotland.

For help with a Debt Arrangement Scheme and for debt advice you can contact Debt Support Trust on 0800 085 0226

 

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