Eligibility for a debt payment programme

• Joint applications

To be eligible for a DPP, the client must:1Reg 21 DAS(S) Regs

•be habitually resident in Scotland. This is difficult to define exactly. The person should have their main residence in Scotland, be registered to vote there, normally have their bank account there and pay their bills there. It excludes anyone temporarily residing in the country, who is working in Scotland but has their ’home’ elsewhere, or is in Scotland on holiday. If you are not sure, contact the DAS administrator;
•have one or more debts;2Reg 20 DAS(S) Regs
•not have a conjoined arrestment order. There is an exception to this. 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 (see here). A client who has been granted a trust deed which has become protected is precluded from having a DPP if they have not been discharged from the trust deed;
•not currently be bankrupt – ie, they have been made bankrupt and they have not yet received their discharge in Scotland, England, Wales or Northern Ireland;
•not be subject to or bound by a Bankruptcy Restrictions Order (including an interim order) or bankruptcy undertaking in Scotland, England, Wales or Northern Ireland.

If the client only has one debt, they cannot apply for a DPP if the debt is being paid under:3Reg 21 DAS(S) Regs

•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.

 

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Joint applications

Clients can apply for a joint DPP if each of them is liable for a debt which the programme covers.

To apply in joint names, the clients must be spouses or civil partners (or living together as spouses or civil partners). Both clients must be eligible to apply and meet the criteria to apply in their own names.

There is no requirement for married clients or clients in a relationship to apply jointly. Each client can apply for an individual DPP instead, if they prefer.1Reg 22 DAS(S) Regs

There are times when only one client in a relationship has surplus income. For example, where only one partner is in paid employment, or where both partners are employed but one’s income is too low 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.

 

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