Your money adviser can ask creditors to accept less than the full amount of the money that you owed them when you started the debt payment programme.
This is called offering a ‘composition’. If all your creditors accept this, it will end your debt payment plan and you will have no more to pay. This option is available to repay your debts early in a DAS to individuals and to sole traders, but it is not available in a business debt payment programme.
An offer of composition can only take place after:
You have paid 70% of the amount that you owed when the debt payment programme started; and
You have made payments for a full 12 years (not including any payment breaks).
Your DAS money advisor will record which creditors agree to the offer of composition. If a creditor does not respond to the offer within 21 days, they will be added to those creditors who agree to the composition.
If all creditors (including those creditors who do not respond) accept the offer of composition, the money advisor will write to you to confirm that your debt payment plan has ended and they will tell your creditors.
But, if all of your creditors do not agree to the offer, your DAS money advisor can still arrange a composition and alter your debt payment plan.
They will take account of the agreements received and make a variation. Where a continuing money adviser is handling the administration of your case, they will write to confirm the result of the decision.