What is the fair and reasonable test?

The Fair and Reasonable test is the criteria that a DAS Administrator will use when deciding on whether to approve or reject a debt payment plan (DPP) application. The Fair and Reasonable test will only be applied where one or more creditors have rejected the proposal being offered by the debtor.   

The DAS Administrator must take into account all of the following:

• the total amount of debt
• the total period of time for the proposed payment plan
• the method and frequency of the regular payments
• the extent to which the creditors have consented
• any other views from creditors
• comments made by the debtor's money adviser
• any previous DPP application
• any other factor which the DAS Administrator considers appropriate