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DAS Full and final settlement

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(@dasdude)
Eminent Member
Joined: 5 years ago
Posts: 41
Topic starter  

DAS - Early settlement

Hello folks,

Would you be able to advise me what the process is for settling a DAS early is
Also if I received some money from a relation but say enough to cover 3/4 of the remaining amount would most creditors accept this offer as a full and final settlement? What happens if one creditor refuses? Do you also know cases where creditors have all accepted a reduced amount or not?

Many thanks


   
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(@dbha21)
Eminent Member
Joined: 3 years ago
Posts: 36
 

To end a DAS early you would usually be expected to pay the full balance of your debt back, as at the date it started.

There are no early repayment penalties or additional fees to pay, but it would be uncommon to see any additional debt forgiveness (that's not the purpose of a DAS).

Best course of action would be to contact your Money Advisor and discuss your options. They cannot compel you to make additional payments or surrender your lump sum, so there's nothing to lose.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 15 years ago
Posts: 13594
 

Hi DASdude,

How long has your debt arrangement scheme been running for?

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


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Hi DASdude

I have been successful in arranging early settlement for a few DAS clients in recent times. The lump sum offer must be made to all creditors by your money adviser, ie they are all offered whatever pence in the pound is available as a final settlement of their debts, which they can agree to accept in return for writing off the remaining unpaid balance.

In my experience many creditors will accept this rather than choose to wait and collect a larger amount over several years. Some probably won't. If that happens then those that have accepted can be paid the agreed lump sum (must be done via your DAS payment distributor) and removed from the payment programme. The other creditors remain in the DAS and your monthly payments will be shared just between those instead, meaning they are repaid more quickly than they would have been otherwise.

Alternatively, if your DAS has been running for 12 years and more than 70% of the debt has been repaid then you have a right to request the remainder be written off under the regulations. Creditors can refuse, but any that don't reply within sufficient time are deemed to accept it and have to write off the remaining debt.

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


   
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(@dasdude)
Eminent Member
Joined: 5 years ago
Posts: 41
Topic starter  

Thanks for your responses. TDA it has been running for 3+ years. Kevin that's great to hear you have helped arrange early settlements for some of your DAS clients. May I ask in those instances was it roughly 75% or 50% of the debt remaining that an offer was accepted on? I appreciate this would vary as per creditor. In my case a significant amount of the creditors have sold on the debt to other debt collection agencies. My understanding from other forums is that they are more likely to accept a reduced offer if it has been sold on as they bought it cheap.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 15 years ago
Posts: 13594
 

Thanks DASdude.

I was asking the question with the twelve year criteria that Kevin mentioned in mind.

Have you asked your DAS adviser about whether they'd be prepared to make settlement offers to your creditors?

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


   
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(@dasdude)
Eminent Member
Joined: 5 years ago
Posts: 41
Topic starter  

Hi TDA, I thought that was why you were asking. I plan to approach my advisor shortly to ask this.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 15 years ago
Posts: 13594
 

Good luck with this DASdude.

It would be interesting to hear how you get on.

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


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Hi DASdude.

I'd say the majority of creditors would look for more than 50% usually, most are somewhere between 70-85% in my experience. It also depends on your own personal circumstances and whether there are any particular reasons that might persuade them to accept a settlement (eg mental health issues etc)

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


   
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(@dasdude)
Eminent Member
Joined: 5 years ago
Posts: 41
Topic starter  

Thanks Kevin that's helpful to know.


   
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(@reg-jon)
Active Member
Joined: 2 months ago
Posts: 7
 

How'd you get on DASdude? 

Kevin - you've mentioned you've been making successful DAS settlement offers for clients.  May I ask if there was any criteria you considered before making the offer for example - length of DAS or % settled to date? 

I'm seeking to settle but have been told there is no mechanism for debtors who's DAS is under 12 years and my admin has refused to make an offer on my behalf. 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Hi Reg Jon.  Please see my answer on your other post on the DAS forum.  In answer this to this specific question, there are no particular criteria for proposing a lump sum settlement, though it would need to be an offer with a reasonable chance of acceptance.  The 70%/12 year rule is only in relation to the right to request a write off of the remaining debt, not offer a lump sum settlement.

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


   
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