Switching From DAS To A Trust Deed In Scotland

24th October 2016

The Debt Arrangement Scheme is an excellent way to repay your debts at a manageable pace. Thousands of people around Scotland have found relief from their creditors thanks to DAS.

On occasion people start to wonder whether choosing DAS was the right call. Sometimes a DAS can be expected to run for a very long time; schemes lasting up to ten years are quite common. A year or two into a debt arrangement scheme, the finishing line can still seem a very long way off.

On other occasions financial circumstances can change. If your personal finances take a turn for the worse, the amount that you can afford to pay into your DAS may reduce. This will also mean that it will take longer than you’d originally hoped to clear your debts in full.

The most common reason for wishing to swap from DAS to a trust deed is to get clear of your debts sooner. Trust deeds in Scotland have a minimum term of four years, whereas a DAS will continue for as long as it takes to fully repay everything that’s owed. 

How Do You Swap Over?

The first step is to take advice about whether you qualify for a Scottish trust deed. This isn’t the right option for everyone to choose, and it’s not an option that your creditors will accept in every single instance.

A professional debt adviser will be able to quickly make an assessment of your circumstances. Switching from the debt arrangement scheme to a trust deed is likely to have some benefits, some drawbacks, and might sometimes also involve some risks. The adviser will be able to inform you about all of this, so that you can make an informed and educated decision.

If you qualify for a trust deed and you want to proceed, the next step will be to appoint a firm to handle this process for you. They’ll work with you to agree proposals which will be made on your behalf to your creditors.

What Happens To Your Debt Arrangement Scheme?

Protected trust deeds in Scotland are a legal personal insolvency process. The effect of making yourself insolvent in this way supersedes almost all other types of arrangements that you might have previously put in place.

Your DAS is cancelled when you formally proceed with a trust deed. For this reason you’ll need to be especially certain that this switch is the right choice for you.

Who Can Help You To Switch?

If you’re thinking about changing from DAS to a trust deed please get in touch with our professionally qualified debt advice team today.

We can advise you whether you qualify for a trust deed, explain how the switching process will work, and inform you about some of the advantages and disadvantages of making this change.

We can also connect you with a reputable trust deed firm that will handle this change professionally and sympathetically for you.

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