The Debt Arrangement Scheme (Scotland) Regulations 2011

Grounds for variation

37.—(1) An application for variation of a debt payment programme may be made—

(a) on agreement between a debtor and each creditor participating in the programme;

(b) on agreement between a debtor and a creditor that a liability of the debtor to repay a sum is to be discharged;

(c) so interest, fees, penalties and other charges are not payable as provided for in regulations under section 7A of the Act;

(d) on a material change in the circumstances of a debtor;

(e) where a debt due at the date of approval of that programme was omitted from, or was wrongly assessed for the programme due to a mistake, oversight, or other reasonable cause;

(f) where a future or contingent debt, known but not quantifiable at the date of approval of the programme, is quantified and due for payment;

(g) where a debtor requires credit to meet an essential requirement; and

(h) where a debtor wishes to defer payments for a period of 6 months, with the period of the debt payment programme extended for an equal period, where circumstances specified in paragraph (3) have resulted in a reduction in the debtor’s disposable income of 50% or more.

(2) An application for variation shall not be made in respect of any other debt of a debtor.

(3) The circumstances for the purposes of paragraph (1)(h) are—

(a) a period of unemployment or change in employment;

(b) a period of leave from employment for maternity, paternity, adoption or to care for a dependant;

(c) a period of illness of the debtor;

(d) divorce, dissolution of civil partnership or separation from a person to whom the debtor is married or the civil partner;

(e) death of a person with whom the debtor shared care (financial responsibilities or otherwise).

(4) In paragraph (1)(h), “disposable income” means disposable income calculated on the same basis as set out in form 1 (on the basis of equivalent details provided on form 3).