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DAS

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 jd61
(@jd61)
Active Member
Joined: 13 years ago
Posts: 18
Topic starter  

do you need to inclued all your creditors in a DAS i was told that one of my creditors dont like ptd or the das scheme and could cause problems.can i leave them out and try to make an arrangement with them


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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Joined: 16 years ago
Posts: 13594
 

Hi jd61.

You'll need to include all of your unsecured creditors in formal debt solutions like protected trust deeds or the debt arrangement scheme.

Not including a creditor is more likely to create problems rather than to solve one.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Mark McFadyen
(@mark-mcfadyen)
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Joined: 16 years ago
Posts: 4798
 

Hi jd61

The problem with doing that would be the other creditors would ask why they are not being dealt with outwith the DAS and as TDA says, it creates big problems.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

Sorry to disagree with trust deed assistant, but in actual fact there is no obligation to include all creditors in a DAS, so it is not like a trust deed in this respect.

As Mark says, in theory it may lead to difficulties with creditors rejecting the DAS proposals because they perceive they are treated unfairly in comparison with other creditors. In practice however, I would be surprised if there were any problems of this nature as there is no compulsion to advise the creditors of other creditors that are not being included. Moreover, they would not even see the payment to your other creditor on your income/expenditure as it is only a very truncated summary that is used -the individual expenditure items are not detailed on the proposals.

Having said that, one of the attractive features of DAS is that even if one or more creditors reject the proposals, as long as the DAS administrator decides that they are "fair and reasonable" then those creditors are forced to comply.

I'm curious - which creditor is it that you are referring to jd61?

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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 jd61
(@jd61)
Active Member
Joined: 13 years ago
Posts: 18
Topic starter  

the reason i am asking is one of my creditors is a credit union i was told they dont like PTD or DAS and they would object and could make it difficult.i thought a DAS would be better than a PTD or bankruptcy because they would be getting 90% of there money back if i went bankrupt they would get nothing or alot less is this right.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

Certainly many credit unions do object to trust deed proposals. I'm not aware of similar issues with DAS, but there may be I suppose.

What proportion of your total debt do you owe to the credit union jd61?

Do you have any savings with the credit union too?

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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 jd61
(@jd61)
Active Member
Joined: 13 years ago
Posts: 18
Topic starter  

i owe them about £1000 and have £500 in savings


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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Joined: 16 years ago
Posts: 13594
 

Hi Kevin,

Thanks for clarifying the situation.

Would a DAS adviser generally feel comfortable about allowing a single creditor to be repaid on full contractual terms (presumably with interest) while other creditors may be paid on slower than contractual repayment terms, lose the benefit of interest, and only receive around 90% of the amount due?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

I think that there would have to be a good reason for it, in order to be able to justify it to other creditors or the DAS Administrator if challenged.

jd61 - I'm therefore presuming that the credit union are a small part of your overall debt. If they objected then the DAS Administrator is not likely to attach a great deal of weight to their objection because of this, so would be likely to approve the proposals as long as they are over a reasonable term (ie less than 10 years). The credit union would be forced along with it, though I think they would have the right of set-off so may be able to swallow up your £500 savings towards your debt with them.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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 jd61
(@jd61)
Active Member
Joined: 13 years ago
Posts: 18
Topic starter  

thanks kevin. my adviser worked out that if i entered a DAS my debts would be paid off in under 5 years.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

In that case I would be very surprised if there would be any difficulty getting your DAS approved even if the credit union objects.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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