Frequently Asked Questions

Have you fallen into debt and are now unsure how to proceed? We are here to help you get back on your feet. Here are some helpful faqs to read over before filling out the form and getting in touch with one of our expert advisers at Personal Debt Support.

If you are struggling financially and are unsure of where to turn to or what the next steps are, Personal Debt Support are here to help.

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      Frequently Asked Questions

      The Debt Arrangement Scheme (DAS), was introduced by the Scottish Government in 2004. This is a legal debt management scheme to help individuals pay off their debt with fixed affordable payments.

      A Protected Trust Deed is a legally binding form of debt relief solution that is available to people living in Scotland with £5,000 or more worth of unsecured debt.

      A Debt Relief Order, or ‘DRO’, is an agreement that is put in place for those with little to no spare income, who don’t own their home and have a debt of £20,000 or less to deal with debts that cannot be paid off in a timely manner.

      A Debt Management Plan, more commonly recognised as a DMP, is an informal solution designed to reduce the monthly overall payments towards your debts.

      An Individual Voluntary Arrangement, more commonly known as an IVA, is a formal, legally binding debt solution between you and the people you owe money to, for example, your creditors. This generally takes place over a period of five years.

      Sequestration is the Scottish legal term for bankruptcy and can allow for all of your current debts to be written off.

      A partnership, trust or unincorporated body of persons can also apply for a Business DAS.

      The only way they can find out is if a creditor is to notify them.

      Yes, you are still eligible for a DRO if you are self-employed.

      This is dependant on how much you owe and how much money you can afford to pay back each month.

      Any business or individual that is struggling with repaying their debts may be eligible for an IVA. However, please always check the requirements for qualification.

      Applying for Sequestration can be relatively inexpensive when compared to some other solutions. It costs £200 to file your application.

      A DAS Register is a public register that records details of everyone participating in a DAS. Credit agencies use these registers to update credit files.

      Within a DAS application, there are charges for the costs of the distribution to creditors and application. There is a maximum of 10% that can be taken in total, no more than 8% to the payment distributor and 2% for the application fee.

      Yes. Interest and charges are frozen as soon as your application is submitted.

      Your appointed Trustee will assist you in applying to the Court for an Award of Sequestration which the creditors have to accept.

      No, you will not have to go to court for a Trust Deed.

      Your appointed Trustee will not contact your creditors until you are granted a Trust Deed. However, you should notify them you are taking professional advice about it.

      No that won’t matter. The DRO Unit of the Insolvency Service will only refuse your application if you are bankrupt and currently in an IVA or you have had a DRO in the last six years.

      Your DRO Adviser will want some proof of your income. They may be happy to accept wage slips or any benefit letters. This does vary from case to case.

      Your DRO Adviser will want some proof of your income. They may be happy to accept wage slips or any benefit letters. This does vary from case to case.

      No. A DMP is a payment arrangement that’s based on the amount of money you have left over after your household bills and living expenses are covered.

      You can stop your DMP at any time, and you don’t have to make a legal commitment when starting a DMP.

      Every debt that’s been included in your DMP can have a ‘payment arrangement’ note added to it.

      This depends on your financial situation and your own choice of which you feel is right for you. IVAs and Bankruptcy are two very different Insolvency procedures that can both deal with your debts.

      A standard IVA usually lasts for 5 years (60 monthly payments), although it can be completed in as little as 12 months if you can propose a lump sum payment to settle your current debts.

      When you are in an IVA all of your current credit agreements will be stopped.

      In most cases, no-one will tell your employer unless you want them to know, although for obvious reasons if you want to keep your sequestration under wraps it is wise to be careful who you share the information with at work.

      You may not have to sell your home.If you have equity in your home you may have to find a way to release that by a re-mortgage or if you own your home jointly, your spouse, partner or friend could buy out your share.

      Unsecured debt can be included, such as balances on credit and store cards, overdrafts, and personal loans.