DAS — the Debt Arrangement Scheme in Scotland

The basicsWhat is the Debt Arrangement Scheme?

The Debt Arrangement Scheme (DAS) is a statutory debt solution that exists only in Scotland. It is run by the Accountant in Bankruptcy (AiB), the Scottish Government agency acting as DAS Administrator. You set up a Debt Payment Programme (DPP): one monthly payment you can afford, which a payments distributor shares among your creditors until the debt is repaid.

DAS is statutory but not insolvency and not debt write-off: you repay the full amount you owe, at a pace that fits your budget. From the day you apply, interest, fees, penalties and other charges on those debts are frozen, and once you complete the DPP they are written off. You can only apply through a DAS approved money adviser — not on your own.

BenefitsWhy people choose DAS

DAS suits people with a monthly surplus who want legal protection while they repay.

EligibilityWho qualifies for DAS?

There is no minimum or maximum debt. What matters is where you live and whether you have a surplus to pay from:

• You are habitually resident in Scotland.
• You have one or more debts of any amount.
• You have disposable income after essential living costs.
• You can realistically repay in full in a reasonable time.
• You apply through a DAS approved money adviser.

You cannot use DAS if you are bankrupt, hold a protected trust deed you have not been discharged from, are subject to a Bankruptcy Restrictions Order or Undertaking, have been discharged from bankruptcy anywhere in the UK, have a conjoined arrestment order (limited exceptions apply), or your only debt is already covered by a time to pay direction or order, or a time order. An adviser will confirm which apply to you. Married couples, civil partners and people living together as though married can apply for a joint DPP if each qualifies.

You can include overdrafts, credit cards, buy now pay later, payday and personal loans, and arrears on utilities, rent, mortgage or council tax — all your existing debts must go in, though rent and mortgage arrears are optional. You cannot include student loans, hire purchase or conditional sale (their arrears aside) or court fines.

CostsWhat DAS costs

DAS has no application fee, and an adviser cannot charge you for setting up a DPP. It is funded from your payments: 2% of the total debt goes to the DAS Administrator and 20% of each creditor's share to the payments distributor — 22% in all, so creditors receive 78% while you still repay 100% of what you owe.

ImpactYour credit file — and what can go wrong

Your DAS goes on the public DAS Register, which credit reference agencies use to add it to your credit file, where it can stay for at least six years. DPP payments are lower than the contractual instalments, so they are reported as partial payments and your credit rating suffers for the whole programme — potentially many years. You must also keep your ongoing bills paid, report any change in circumstances within a week, and get the AiB's consent before borrowing above £2,000.

The scheme allows a payment break of up to six months if your disposable income drops by 50%, and a crisis break of up to two months in any rolling twelve. Fall into arrears without one and your DPP can be revoked — official guidance is not consistent on how many missed payments trigger this, so ask your adviser. Revocation is serious: you still owe the balance, creditors can add back the interest and charges they would otherwise have applied, and within 14 days you leave the register, diligence can resume and creditors can again petition for your sequestration — so your home, car and savings lose the protection the DPP gave them.

Next stepsHow to get started

It starts with a no-obligation conversation. If DAS fits, your budget is worked out with the Common Financial Tool — and only a DAS approved money adviser can submit the DPP application. Creditors then have three weeks to respond (no reply counts as agreement), and your first payment is due within 42 days of approval. If you need breathing space first, a statutory moratorium gives six months of protection from diligence (one per twelve months), though it does not freeze interest.

DAS is Scotland-only. In England and Wales the comparable routes are a Debt Management Plan, an IVA, a Debt Relief Order or Breathing Space; in Northern Ireland, a Debt Management Plan or an IVA (Breathing Space does not apply there). With no surplus income DAS cannot work — a Minimal Asset Process or sequestration may fit better. If you can afford payments but need the rest written off, a protected trust deed is the other Scottish route — unlike DAS it is insolvency, usually runs about four years, and your assets can be used to pay creditors.

Open Finance Debt Solutions Ltd is a commercial, profit-seeking service, authorised and regulated by the Financial Conduct Authority (FRN 826131).