WB Debtcare. Debt Arrangement Scheme. WYLIE & BISSET LLP WB DEBTCARE Freephone: contact@wbdebtcare.com

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1 WB Debtcare Debt Arrangement Scheme WYLIE & BISSET LLP WB DEBTCARE Freephone:

2 A Guide to the Debt Arrangement Scheme (D.A.S) with us WB Debtcare is the Consumer Debt Solutions arm of Wylie & Bisset LLP. We are regulated by the Institute of Chartered Accountants in Scotland. Our Insolvency Practitioners are Licensed by the Insolvency Practitioners Association, and we are proud to act as a Provider of insolvency services to the Scottish Government. We are members of Money Advice Scotland and subscribe to their DAS code of practice. Our Consumer Debt Solutions team operates throughout Scotland and is coordinated from our office in Glasgow. The Debt Arrangement Scheme (DAS) was introduced by the Scottish Government in November 2004 to offer individuals in financial distress the ability to pay back their debts under a Debt Payment Programme (a DPP ) with the backing of the Debt Arrangement Scheme legislation. A DPP under the Debt Arrangement Scheme is one of a suite of options available through WB Debtcare to someone in financial distress our advisors can provide you with details of all the options available to enable you to make an informed choice of how to proceed. A consultation can be arranged at a time to suit you, in person at a convenient location, or by telephone. You may also visit our website ( or browse our other publications for more information. 2 To arrange a free consultation, simply telephone

3 What is a Debt Arrangement Scheme DPP? DPP approved under the Debt Arrangement Scheme stops creditors A taking action against you and freezes their interest and charges whilst you repay what you owe over an agreed period (as a guide, no more than 10 years). It is the only debt management scheme for repaying your debts which is legally binding on your creditors, and stops interest and charges accruing. Under the Scheme, your budget is assessed and from that one single monthly (or weekly) payment is agreed with you. This is paid into the Debt Payment Plan, and thereafter distributed to your creditors. The key to the success of a DAS plan is that it is designed not to take account of any assets you have (such as your home or car). When would a Debt Arrangement Scheme DPP be right for me? You have some surplus income to pay towards your debts. You are currently unable to repay your debts at the agreed amounts. You want to clear your debts without taking out a loan. You would prefer a qualified professional to deal with who you owe money to. With a freeze on interest and charges, you could pay back your debts. Creditors are threatening legal action and you are concerned about being forced into Bankruptcy or your home being affected. You require some breathing space to reorganise your affairs and repay your creditors. 3

4 How do I start off my Debt Arrangement Scheme DPP? The first thing to do is to contact an Approved Money Advisor. One of WB Debtcare s team can act as your Approved Money Advisor (we won t simply send you on to someone else). Your Approved Money Advisor with WB Debtcare will firstly discuss your circumstances with you to ensure that a Debt Arrangement Scheme DPP is the most suitable option. The next step is to go over a realistic budget for you with your Approved Money Advisor, and from this you will agree the amount of the single monthly (or weekly) payment that is to be paid to your DPP for your creditors. The Approved Money Advisor will then submit the details of your Debt Arrangement Scheme DPP to your creditors. Your creditors will have a period of 21 days to advise your Approved Money Advisor if they object to the Debt Arrangement Scheme DPP. If no creditors object to the proposed plan, then its details are submitted to the DAS Administrator (The Accountant in Bankruptcy an office of the Scottish Government), and the DPP will automatically be given approved status. If any of your creditors do object, then the DAS Administrator would consider whether or not your DPP is fair and reasonable, and if so, approve your DPP (regardless of any of your creditors objections). 4

5 What is the timetable to having my DPP put in place? Weeks Action 1 Initial Consultation and information gathering 2 First Creditor contact requesting debt level confirmation 5 Follow up discussion with client and proposal sent to creditors for 21 day approval. 8 Client has final interview and signs DAS application. Proposal is sent to the DAS administrator for approval. 9 DAS administrator approves programme. Payment distribution is set up. What can I do if creditors are likely to take action against me before my plan is in place? If you are worried that creditors may take action against you before you are able to get your Debt Arrangement Scheme DPP up and running, then your Approved Money Advisor can apply on your behalf for a legal 6 week breathing period to enable your Debt Arrangement Scheme DPP to be formulated and approved. 5

6 Do I have to deal with my creditors as part of the process? No. Your WB Debtcare Approved DAS Advisor will deal with your creditors initially to agree the amounts owed, then send the DPP to your creditors, and deal with any queries they have on your DPP. You don t even have to make payments directly to your creditors single payments are made directly to your DPP, and then your creditors are all paid their share under the DPP. What if my circumstances change after my Debt Arrangement Scheme DPP is approved? If any of your circumstances change and this affects your ability to carry on with your DPP under its original terms, then your WB Debtcare Approved Money Advisor can put forward an appropriate amendment to the DPP to your creditors. Creditors have the opportunity to object to this, and as with the approval of the DPP initially, if they do so then the DAS Administrator would consider whether or not your amended DPP is fair and reasonable, and if so, approve your DPP amendments. If you miss payments during your DPP or if a creditor makes a successful application, then your DPP may be brought to an end. 6

7 How much does a DAS cost? he initial consultation of whether DAS is suitable for you, or whether T another one of our options would be better, is free. There is no commitment from you until you are happy and agree for us to take you on as client. Thereafter we have different cost structures to suit the needs of differing clients. When would a Debt Arrangement Scheme DPP not be right for me? You have to have sufficient disposable income to pay off your debts in full, and must do this over a fair and reasonable time period (as a guide, no more than 10 years). If this cannot be achieved, then it may be appropriate to consider one of the other debt solutions offered by WB Debtcare. Your Approved Money Advisor will go over this with you. What will happen to my home? A s long as you continue to pay your rent, mortgage or secured loans your house will not be at risk. Your Approved Money Advisor will have to know the financial details of your property. Once your DPP is approved and remains in force, creditors will not be able to take any action against your home. Your Approved Money Advisor will be able to advise you on this in full. 7

8 How will I benefit from my Debt Arrangement Scheme DPP? One single manageable monthly payment. Your payment will be calculated on your real income and expenditure you can still have a life. Creditors cannot take further action against you. Your Approved Money Advisor will deal with your creditors. An end to demand letters and calls. All interest and charges will be frozen. Have the security of a government approved and audited debt management programme. Start planning your future, now. For further information Wylie & Bisset LLP WB Debtcare, 168 Bath St, Glasgow, G2 4TP Freephone: contact@wbdebtcare.com Web: