Notes for Guidance - Creditors - Debt Arrangement Scheme

When an application for a DPP is received by the DAS Administrator and issued to creditors, the client is protected against creditor action. This protection lasts unless they withdraw their application or the DPP is rejected by the DAS Administrator.

All interest, fees, penalties, and other charges on debts included in the programme are frozen from the date of application. If the DPP application is approved all interest, fees and charges will be written off when the programme is completed.

The DAS Register will be amended to show 'application under Regulation 20 for a DAS DPP has been received and is yet to be approved'. This status will apply to DPP proposals awaiting feedback from creditors on whether they will consent to the proposal or where a decision by the DAS Administrator is required.

If the client wishes to withdraw the DPP application they may do so in the period between an application for a DPP being received and the DPP being approved or rejected.

Protection from diligence will cease from the date the DAS Administrator enters the withdrawal of the application on the DAS register.

The DAS register will be amended to show 'withdrawal of application under Regulation 20(4)'.

Protection from diligence will continue for 14 days from the date the DAS Administrator enters the notice of rejection of the DPP on the DAS register.

The client has the right to request a review within 14 days of the date they are notified of the rejection, and the DAS Administrator must carry out the review within 28 days of the date the application for review is received. The client will be protected from enforcement action during this further 28 day period. 

If the review is not upheld (i.e. the decision to reject the DPP application stands), the client will have the right to appeal to the sheriff. However, there will be no regulatory protection against enforcement action by creditors, who will be able to consider whether further enforcement action to recover debts is appropriate. The terms and conditions under which the debt was originally provided continue to apply.

The DAS register will be amended to show 'application has been rejected under the fair and reasonable test under Regulation 25'.

Any application for a DPP in which at least 90% in value of creditors consent, or are deemed to have consented, will automatically be approved by the DAS Administrator.

The DAS Register will be amended to show 'a programme has been automatically approved under Regulation 24'.

The date of approval will take effect from midnight of the day immediately preceding the day the notice appears in the register (i.e. a DPP approved on 1 November 2019 will be approved from midnight on 31 October 2019).

Once the DPP is approved, and throughout the life of the DPP, it is not competent for creditors to serve a charge for payment or to commence or execute any diligence to enforce any debt owed by the client.

Creditors will not be able to petition for the client’s sequestration.

Any application for a DPP in which some of the creditors do not consent will remain on the DAS register as 'application under Regulation 20 for a DAS DPP has been received and is yet to be approved' until the DAS Administrator has approved or rejected the DPP.