Deduction from earnings order and the Debt Arrangement Scheme

A debt payment programme (DPP) under the Debt Arrangement Scheme (DAS) cannot protect a client from enforcement of child maintenance arrears. When applying for a DPP under the DAS, if a client has a DEO for arrears only, they can add this debt to their application. It is then up to the CMS to approve the DPP and remove the DEO. Any monies deducted must be added back into their common financial tool/common financial statement to create an accurate picture of the client’s financial situation. If, however, they have a DEO for both current maintenance and arrears, the approved debt adviser needs to find out the amount of arrears the client has from the CMS. They can then enter the arrears into the DPP and, if approved, the DEO must be adjusted to include current maintenance payments only. It is a standard condition of the DAS that ongoing child maintenance is paid, failure to do so can result in the approved DAS being revoked.