Notes for Guidance - Money adviser - Debt Arrangement Scheme

The client must meet certain requirements to apply for a DPP.

Individual application

The client must:

• be habitually resident in Scotland. This means the person should have their main residence in Scotland, be registered to vote there, normally have their bank account and pays their bills there.
  It excludes anyone temporarily residing in the country, who is working in Scotland but has their home elsewhere or are in Scotland on holiday. Contact the DAS Administrator if you are uncertain. 
• have one or more debts
• not have a conjoined arrestment order. However, if a client has a conjoined arrestment order and a creditor (it does not matter whether this creditor is involved in the conjoined arrestment order or not) has tried lawfully to enforce another debt due, the client can apply for a DPP
• not be a party to a protected trust deed. Any client who has granted a trust deed which has become protected is precluded from having a DPP, if they have not been discharged from the trust deed
• have received their discharge from bankruptcy, in Scotland, England and Wales, or Northern Ireland
• not be subject to or bound by a bankruptcy restriction order (including an interim order) or bankruptcy undertaking in Scotland, England and Wales, or Northern Ireland

If the client only has one debt, they are not eligible if the debt to be included in the DPP is being paid under:

• a time to pay direction under the Debtors (Scotland) Act 1987 
• a time to pay order under the Debtors (Scotland) Act 1987 
• a time order under the Consumer Credit Act 1974

Joint application

Clients can apply for a joint DPP if they are each liable for a debt which could be paid under the programme.

Both clients must meet the requirements to apply for an individual application and have the following type of relationship:

• spouses or civil partners of each other
• living together as if spouses or civil partners of each other

Each client can apply for an individual DPP instead, if they prefer. In these cases you can treat any joint and severally liable debt as if each client owes the full outstanding amount or split it between the clients.   

The creditor has the ability to apply to vary the client’s DPP if the debt is paid in full before the end of the agreed DPP period.  Therefore, the client should not overpay.  However, it is good practice for the client and money adviser to monitor this situation, and apply for a variation if required and if the creditor fails to do so.

There will be times when only one client in a relationship has surplus income. For example, if only one client in the relationship is in paid employment, or where both clients are employed but one client’s income is too small to provide a viable basis for a sole DPP.

Provided the clients meet the eligibility criteria and the criteria for a joint DPP, they can apply together. In these circumstances, the incomes, or income, can be regarded as joint.