Debt Arrangement Scheme: what if you cannot pay?

When in the Debt Arrangement Scheme, If you lose your job or suffer an income drop, you may struggle to maintain payments to your programme. If you find yourself in this situation, the last thing you should do is ignore it. If you cannot maintain payments to your Debt Payment Programme this can have serious consequences for you, as you may find that either the DAS Administrator or one of your creditors may apply for your DPP to be revoked. If you DPP is revoked, not only do you lose all the protections of the Scheme, but creditors can reapply any interest, charges, fees and penalties they were not able to apply whilst you were in the Debt Arrangement Scheme.

Do you Qualify for a Payment Holiday?

income, you may struggle to maintain your payments. If this does happen and you do nothing and begin missing payments, your Debt Arrangement Scheme could be revoked.

This means all the interest and charges can be reapplied to your debt. There may, however be an alternative to this.

First where you can still afford to pay something, you could apply for a variation to reduce the amount you are paying each month; or you could ask for a payment break when you are not able to maintain your payments.  Payment breaks are allowed for up to 6 months, providing you can show your disposable income each month has dropped by more than 50% - this does not mean your total income has to have dropped by 50%, only that which you can afford to pay towards your debts.

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