What happens if a DPP is revoked?

The DAS Administrator will automatically revoke a debt payment programme (DPP)  if the debtor applies and is awarded bankruptcy or signs a trust deed which becomes protected.  The debtor’s details will be removed from the DAS Register and recorded instead in the Register of Insolvencies.  If the DPP is revoked, the DAS Administrator will notify of the revocation in writing to all parties.  The debtor will be liable for all interest, fees, penalties and other charges that would have been payable had the DPP not been approved.  

There are a number of grounds where the debtor, a money adviser acting on behalf of the debtor or a creditor in the DPP can apply to revoke a DPP.  These grounds include where

• a debtor has failed to satisfy the conditions of the DPP or
• the debtor has missed two payments and the third is due or
• the debtor has made an untrue statement when applying for DAS or  variations to their DPP or
• the parties involved in a joint DPP have separated

The application for revocation must be made on a statutory form 5 and sent to the DAS Administrator for consideration.

• What is a form 5?

The DAS Administrator will notify all parties if they intend to revoke the DPP, giving them a period of at least four weeks in which to feedback any comments to the DAS Administrator.   The DAS Administrator will consider the following factors when considering whether to revoke the DPP

• the nature of the failure or untrue statement
• whether the application complies with the grounds listed above
• any factors that indicate whether or not the DPP will be successful
• any other factors for consideration

All parties will be given notice of the DAS Administrator’s decision. 

If an application is revoked all details will come off of the DAS register straight away.

Please note If a joint DPP is revoked on the grounds of separation, creditors cannot enforce diligence and must continue to freeze all interest and charges for a period of six weeks immediately following the revocation of a joint DPP.