The Debt Arrangement Scheme is a government debt management scheme which allows you to pay off your creditors in full over a longer time period without the threat of legal action from those you owe money to. DAS freezes interest and charges on your debt, although this does not extend to continuing liabilities, such as future mortgage payments.
You will require to have surplus income each month from which your creditors can be paid. A payment distributor will make regular payments to your debts from your monthly contributions. The scheme has flexibility to alter the level of your monthly payment to take into consideration changes in your financial position.
The scheme protects your assets such as your main home. This can be particularly beneficial if you are a home owner and you have concerns about the impact your debts may have on your ability to remain in your home.
DAS is provided free of charge by approved money advisers but some private companies do charge for this work.
Your creditors may object to your DAS proposal however in these cases the Accountant in Bankruptcy will assess whether your proposal is fair and reasonable in your circumstances and if they do so, it will mean that your creditors will still be legally bound to accept it.