You must keep up your regular mortgage or rent payments whilst considering entering into any formal debt solution. Rent & mortgage payments are considered to be a priority debt, alongside utility bills and council tax as opposed to a non-priority debt which is generally considered to be a typical unsecured loan or a credit card debt. However, you should never treat a non-priority as unimportant, as there are consequences for not paying these too.
In the Debt Arrangement Scheme, you can choose not to include your rent or mortgage arrears in your Debt Payment Programme. You may want to do this if you already have an arrangement to pay off the arrears with your landlord or lender. Discuss this with your debt adviser.
If you choose to have rent or mortgage arrears included in your Debt Payment Programme (DPP) but your landlord or your lender still starts possession action, the court or tribunal may take this into account when deciding the case.
Also, one of the factors the court or tribunal must consider when deciding if it is reasonable in all the circumstances to allow eviction to go ahead, is whether you are in a Debt Payment Programme.
Understandably, many people choose not to include their rent or mortgage arrears in their DPP.
Your debt adviser will also contact your creditors, if necessary, and prepare and submit your application for a Debt Payment Programme. If you start to fall behind with these payments once you are in a Debt Payment Programme, you should speak to your debt adviser as soon as possible.
Call DAS Scotland on 0141 241 6299 for debt help in Scotland today.