Many people fall in debt due to various reasons and there is a huge risk of going into bankruptcy due to such debts. The government of Scotland has brought in some unique solutions for the residents of Scotland to get rid of the burden of debt. There is a unique way by which the threats from the creditors can be avoided and this is what is achieved through the Government Debt Advice.
The type of debt may include catalogs, credit cards. Council tax arrears, rent/mortgage loans, bank loans, etc. Here, in this article, you can know your choices and solutions to meet the threat of debt through the Government Debt Advice Scotland.
Debt management program: The Debt Arrangement Program allows paying the debt over an extended period after having an agreement with the creditors. This program is an informal arrangement made with the creditors who may decide at any point of time not to accept payments you offer.
The best way to set up a Debt management program is to approach an approved money adviser. You may approach the money advisor through a helpline or over the telephone or Scottish Debt line as informed in the Government Debt Advice. The selection of a suitable money advisor will go a long way to alleviate the problems related to a debt.
DAS or the Debt Arrangement Scheme: This is a unique scheme brought to help and protect the debtors who owe to several creditors. The debtors having surplus money can make easy payment to creditors on a regular basis through this scheme.
DAS is somewhat like a Debt management plan but it gives you additional protection which makes it more interesting. Under this scheme, a single and regular payment can be made to an approved payment distributor. The Approved payment distributor upon receiving the payment from you will further send the money to the creditors.
If you opt for a Debt payment program under the DAS, it will not be possible for the creditors to enforce action against you. When you are in DPP the interest rate will be frozen and you will be saved from bankruptcy. For applying a DPP, the role of the money advisor is critical as the advisor will be in the best position to advise you about the DAS.
The money advisor may advise you about the right type of DAP and will make the necessary liaisons with creditors. Creditors will be asked to agree to the DPP and DPP will allow you to pay off debt at a lower rate over a longer period. This DPP will automatically stand approved if the creditors do not respond within a stipulated time.
In case the creditors do not agree to DPP, the Administrator of DAS has the option to approve it if it is considered fair and reasonable. This program can be varied in case your circumstances change if the administrator considers it to be reasonable and fair.
Trust Deed: Government Debt Advice Scotland also provides an informal alternative for going against bankruptcy and is a legally binding agreement made between you and the creditors. The assets and the properties that you possess are passed to a trustee who will manage your financial affairs. Once your Trust Deed gets protected, it will not be possible by the creditors to take further action against you.