Struggling to cope with rising debt – Debt Arrangement Scheme (DAS)
With debt rising across many sectors of the community due to unprecedented energy and fuel increases, how to deal and manage it will be key for those who find themselves struggling to cope.
Where do individuals and small businesses go for advice, who do they speak to?
Dunedin Advisory has recently been confirmed by the Accountant in Bankruptcy (AiB) as the newest Payment Distributor for the Debt Arrangement Scheme (DAS), one of only six private firms authorised to do so in Scotland.
The Debt Arrangement Scheme is the only Scottish Government backed statutory non-insolvency debt management plan in the UK. It allows people in debt much needed breathing space and allows them to repay their debts through a debt payment programme over an extended period of time.
Who can be considered for a Debt Arrangement Scheme?
Individuals, sole trader business owners, partnerships, certain limited partnerships, trusts, unincorporated businesses, certain categories of charities and certain corporate bodies are eligible for DAS. Liabilities due for ordinary loans, credit cards, utility arrears, HMRC, suppliers, corporate companies and shortfalls on secured loans can all be considered.
What are the benefits of entering a DAS?
When a DAS is approved all interest, fees and charges are frozen and individuals are given protection from the threat of any legal action from their creditors (those who the debt is payable to).
The appointment by the AiB means that Dunedin Advisory is now able to offer a full range of services under the Debt Arrangement Scheme, acting as money advisor, continuing money advisor and payment distributor.
Who gives support and money advice?
A money advisor is a qualified person who can provide money advice to an individual and should a DAS be the most suitable option, assist with the DAS application to the AiB. The money advisor is responsible for providing comprehensive debt advice to the individual and liaising with creditors both before and during the DAS application. On submission of the application, the individual can nominate a money advisor to be their Continuing Money Advisor (CMA). This is the advisor who will assist them for the duration of their DAS. The CMA is responsible for reviewing the individual’s circumstances throughout the programme, undertake any variations to the programme and respond to any creditor enquiries. They are also the first point of contact for the Payment Distributor or AiB should there be any enquiries about the DAS.
When submitting a DAS application, the money advisor can nominate a Payment Distributor (PD). The PD is a company who is responsible for ingathering the DAS payment from the individual and distributing the funds to the AiB and creditors. The PD has a requirement to be regulated by the Financial Conduct Authority (FCA), in order to act in this capacity.
With our appointment Dunedin Advisory are ideally positioned to assist individuals with every aspect of the DAS process from start to finish.
Think you need advice?
If you are struggling with your current financial position and would like advice and support, Dunedin Advisory can help. Our team are highly experienced in providing confidential debt advice and understand how difficult and worrying financial pressures can be. There is no one solution fits all and we take time to discuss each individual circumstance with clients, providing a full summary of the discussions and our recommendations for individuals to consider.
We can meet face-to-face at an agreed meeting place or via Teams/Zoom call, standard call via landline, mobile to mobile or via email communication.
We offer all employed individuals receiving employment income, those in receipt of private pension income and homeowners a FREE consultation, to discuss financial budgeting and lending assessment. This includes a review of short-term borrowing and the repayments required across various commitments with a summary review and recommendation. Where a fee-paying service may be an option, we set out our terms of business and fees in advance of clients making any decisions or commitment to engage our services. To book your free review click on the link below or call:
Telephone – 01592 630085 or 0333 240 0686