A debt repayment scheme, as the name suggests, is the scheme that is used before the bankruptcy of a person or business. The official assignee oversees all the proceedings of this scheme under their wing.
A debt repayment scheme, as the name suggests, is the scheme that is used before the bankruptcy of a person or business. The official assignee oversees all the proceedings of this scheme under their wing. In this article, you will learn everything about the repayment assistance plan.
What does a debt repayment scheme mean?
A person who is in debt can use the DRS scheme to avoid bankruptcy and salvage their reputation in the community.
- A debtor can start over after they commit to the DRS terms and conditions.
- They get five years to repay the amount to the creditor that is given under this scheme.
- AN OA checks the eligibility of the debtor before any proceedings are carried out.
- The person should not have the liability of more than $150,000 to be qualified under this scheme.
- The person should have stable employment and an income that will help them repay the amount.
- The person should not have used DRS in the last five years and be bankrupt at the same time, otherwise, they will be disqualified.
- They should not have been a part of the court proceedings in the past five years in any manner.
- The debtor should not be the sole partner or proprietor in any company.
If they meet all these requirements, only then they can partake in the DBS scheme and escape bankruptcy to turn their life around. It is a valuable second chance, and they will not get another opportunity to save their name and status.