Under DAS, a debtor signs up to a debt payment plan (DPP) which allows them to repay their debts based on their disposable income. A DPP can last for any reasonable length of time, depending on the amount of debt owed and how much the debtor can pay. The creditors will receive regular payments towards the debt(s) owed to them under the terms agreed in the DPP. When the money adviser or DAS Administrator submits the application to creditors for approval, all interest, fees, penalties or other charges owed are frozen (provided that the proposal is approved). The debtor is also protected from your creditors taking any action against you to recover their debt
The DPP proposal will confirm the amount due the creditors included in the DPP. It will clearly state
Following the approval of the DPP the DAS Administrator or continuing money adviser will notify the payments distributor who will arrange the start of the payments from the debtor. During the period of an approved DPP the debtor will make regular payments to a payments distributor who will make payments to the creditors. The payments distributor will first deduct the fee for consideration of the application form and their fee for distributing the payments. Should the debtor’s circumstances change during the period of the DPP they can make an application to the DAS Administrator to vary the agreed payments.
If the DPP is rejected, then the debtor will continue to owe the debt due to their creditors, protection from diligence will stop from the date the DAS Administrator enters the notice of rejection of the DPP on the DAS register. The terms and conditions under which the debt was originally provided continue to apply and creditors will be able to consider whether further action to recover debts is appropriate.
A DPP reaches completion at the end of the agreed period of the DPP. This will be when the debtor makes all the payments as agreed, or has made a lump sum payment equal to the sum of all outstanding payments. Completion of the DPP will be at the time specified when the DPP was first approved, or if it has been varied, at the most recent variation.