What happens if you cannot pay your Debt Arrangement Scheme?

What if you cannot pay your Debt Arrangement Scheme (DAS)? This may happen If you lose your job or suffer an income drop. You may then struggle to maintain payments to your programme.

If this does happen, the last thing you want to do is ignore it. It is understood that when in a repayment programme, it is possible you will experience changes in your circumstances and,  either temporarily or permanently, you may not be able to maintain the original payments you proposed.

The Debt Arrangement Scheme offers two options that can help in this situation and may help you having your Debt Payment Programme (DPP) revoked. The first of these is a formal payment break and the second is applying for a formal variation of your scheme.

If you do miss payments and don’t have the approval of the Debt Arrrangement Scheme Administrator, this can have severe consequences for you. Either the DAS Administrator or one of your creditors can  apply for your DPP to be revoked. If  a creditor or the DAS Administrator is proposing your DPP is revoked, you will be notified and allowed to submit your reasons why it shouldn’t be.

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. This means you will have lost the benefits of the Scheme for the time you have been in it. If you reapply, the fact you had a DPP that was revoked can be held against you.

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