Revocation of a joint DPP

Where the clients no longer meet these criteria for a joint DPP, the DPP can be revoked. The clients are protected from creditor enforcement for six weeks following the date of revocation. In effect, this means the AiB treats both clients as if they have made a moratorium application in their own names.

This allows both clients to seek money advice without fear of a creditor taking action against them. Only joint DPPs which are revoked as a result of the clients’ relationship breakdown get this protection. It does not apply if a joint DPP has been revoked due to a breach of the regulations.

If the DPP has been revoked due to the death of one of the clients, the revocation has no effect for six weeks. Creditors cannot apply any interest, fees or charges to the debt during this six-week period. The debt adviser should bear this in mind if the surviving client wishes to apply for a DPP in their own name. In addition to the above protections, if a joint DPP has been revoked as a result of a relationship breakdown or a death, a client has the right to apply for a moratorium, even if they have already had a moratorium within the preceding 12 months.2s195(1) B(S)A 2016

There is further protection where the client applies for a DPP in their own name within 21 days of the revocation of the joint DPP. In this case, the creditors cannot apply any interest, fees or charges to the debt.3Reg 4(4) DAS(IFP)(S) Regs

You should treat any joint and severally liable debt as if each client owes the full outstanding amount. This protects each client if their ex-partner does not pay. The creditor can 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 debt adviser to monitor this situation, and apply for a variation if required and if the creditor fails to do so.

If the client applies for a new DPP more than six weeks after the previous joint DPP was revoked, interest, fees and charges may be applied to the client’s debts, subject to the discretion of the creditor. Advisers should assist the client in these circumstances by submitting an application within six weeks. The client is still protected from creditor enforcement action up to the end of the six weeks.