Regulation 36A Proposal for variation: discharge of liability on compensationF1

The DAS Administrator may propose a variation of a debt payment programme where a liability, or part of a liability, of the debtor is discharged by a creditor applying compensation between that debt, or part of that debt, and a liability owed by the creditor to the debtor.

The DAS Administrator may not do so unless it has made a reasonable attempt to agree a variation between the debtor and creditor.

The proposal must be intimated in writing to those mentioned in F2regulation 36(4)(a) to (c) and to the money adviser.