Debt Arrangement Scheme

Debt Arrangement Scheme

Clear your debts with Debt Arrangement Scheme Scotland

Introduced in 2004, a Debt arrangement scheme Scotland is a legal debt management tool that was introduced by the government to aid people to repay their debts. Although, this scheme is only accessible for the citizens of Scotland to get help with debts. Similar to other informal debt management plans, this scheme has the added advantage of providing you with extra protection.    

This debt arrangement scheme helps the citizens to register themselves for a debt payment programme (DPP). Under this programme, they can opt for an affordable monthly repayment scheme to clear their debts. The details of how a citizen can get help with debt under this scheme have been discussed below. 

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Debt Arrangement Scheme or DAS is a specially designed government-supported debt arrangement scheme Scotland. This scheme helps the citizens of Scotland to get registered under a debt payment programme. Once DAS registered, they aim to clear their debts by paying an affordable monthly amount over a prolonged period without facing any legal consequences.

If DAS is approved, then the interests and other charges will be undergoing freezing from the day, one has applied for this debt arrangement scheme Scotland. Thus, at the end of the tenure of the DAS, an amount may be waived off.  If the citizen has completed the payment assigned under the DPP, then they don’t need to bother about the interest. Once frozen during the DAS tenure, these interest amounts and other charges can’t be added back by the creditors.  The government of Scotland supervises the scheme.

Once an individual is DAS registered, he/she is entitled to legal protection that prevents them from any legal harassments by the creditors. It is specifically designed to ensure that the citizens don’t have to face any serious legal consequences from the end of the creditors who may take serious actions against them.

Any citizen of Scotland, who is struggling with their debt and facing challenges while reaping them back to the creditors to whom they owe can get help with debt under this scheme. Irrespective of the number of creditors they owe the money, they can register themselves under DAS. The purpose of DAS is to ensure that citizens can manage their debts more efficiently and they don’t have to go for a declaration of insolvency.

The scheme is so designed that a citizen struggling with debts can continue with their repayment procedure by paying an affordable amount at a regular interval. The monthly amount to be repaid by the DAS registered ones is calculated based on their income. Thus, the amount is within the manageable limits of the citizens who owe the debts. At the initial stage, freezing of the interests, fees, and penalties along with other charges related to the debt repayment is done. Finally, at the of the repayment tenure under DAS, they can be waived off. Thus, it offers a fresh financial begging for the citizens, because all the debts are repaid completely by the end of the repayment period under DAS.

The tenure of repayment under the Debt Arrangement Scheme will depend on the amount of debt to be repaid by the individual and how much can they afford to pay as the monthly repayment amount. Even the assets like car or home will remain protected if the citizen can make the monthly payments assigned regularly. Moreover, registered individuals don’t have to deal with the creditors directly. Thus, the citizen will be free from the stress of being chased and harassed by the creditors.

The Debt Arrangement Scheme Scotland functions in a pattern that ensures a more feasible way to repay the debt of the citizens of Scotland. Thus, it is a government-supervised scheme for debt management for the citizens who need help with debt.

As per the new regulations introduced in November 2019, the citizens don’t have to pay any fees either for the DAS set up or its maintenance later on.

 DAS has an advisor-approved under the plan who becomes the point of contact between the creditors and the individuals who owe the money i.e. the debtors. Thus, there is no direct interaction of the debtors involved with their respective creditors. They help create an agreement under the DPP of the debt arrangement schemes between the two parties to ensure smooth completion of the whole debt repayment process.

 Since there is no insolvency or other negotiations related to the debt involved in the debt arrangement scheme, often it is a preferred way for many citizens. This scheme is mostly based on a Debt Payment Programme (DPP). Under this scheme, a plan is designed to ensure the debt is cleared after regular monthly repayment at an affordable rate for a certain period. The citizens don’t even have to negotiate with the creditors regarding the interests, repay the amount or the amount to be written off, as this scheme ensures full payment of the desired amount.

The debt arrangement scheme mostly works in the following steps:

  1. Citizens looking for help with debt have to get in touch with a DAS-approved Money Advisor.
  2. Citizens can even get in touch with our debt assistant team before deciding if DAS is the perfect solution to deal with their debt problems not.
  3. They will then have a confidential meeting with the DAS advisors to discuss their current financial status and problems they are facing in terms of repaying the debt.
  4. Based on their disposable income and other expenses involved, the advisor will accordingly calculate the amount for the regular monthly repayment that will be paid to the creditors under
  5. Once the citizen is confident to go for this debt arrangement scheme Scotland, then the DAS money advisor will apply for the DPP on the behalf of the citizen. Under DAS, citizens can’t make the application for DPP directly.
  6. The proposal is then sent to the creditors to get their approval. The creditors have to decide whether to accept or reject the proposed amount and other conditions within 21 days of receiving the proposal. If there is no response from their end, it is assumed that they have agreed to be a part of the debt arrangement scheme. Thus, they are ready to receive the monthly amount proposed as a mode of repayment.
  7. In case one or more creditors don’t agree, then the DAS Administrator or the Accountant in Bankruptcy (AIB) will take the call.
  8. If AIB finds the application fair and reasonable, then legal actions can be taken against the creditors. The legal actions on behalf of AIB ensure that the creditors will surely agree to the clauses.
  9. If it gets approved, it will be officially recorded under the DAS
  10. After this, the only responsibility of the citizen will be to make the affordable monthly payment to the approved payment distributor under this debt arrangement scheme.
  11. All other interests, charges, and penalties involved with the debts will then be frozen till the completion of the DPP under the DAS.
  12. No legal actions can be taken against the citizens by the creditors during the tenure of the debt repayment.

Are you an indebted Scottish resident, who is facing continuous chasing from creditors? Then you may choose to go for a debt arrangement scheme Scotland. We have a team of experts who will guide you if you need any help with debts and want to register for a debt arrangement scheme Scotland. We will analyze your financial status and guide you thoroughly to ensure your debt is repaid within the given time under the DAS. Our focus is to make your future debt-free.

But before you opt for the debt arrangement scheme, you should have a clear idea about its advantages and other benefits. Here is the list of benefits and advantages of choosing DAS:

1. Not insolvency:

Most of the debt management plans have a legal involvement of the creditors who need to confirm that the citizens who owe the money are insolvents. So, even by the remotest possible chance, the plan fails, the creditors can take legal actions against you and confiscate you. But DAS is not insolvency. Rather it is just a statutory repayment plan that helps in debt repayment of Scottish citizens.

2. Freedom to go for affordable payment:

One of the best features of DAS is the freedom to go for a consolidated affordable monthly/ weekly payment as per your disposable income and other financial circumstances. This is a respite from dealing with several repayments to various creditors.  DAS has the provision of helping you with several debts including personal loans, credit card debts, bank overdraft, etc. To cope up and repay all these debts, a DAS registered citizen has to make one repayment in a month or a week regularly to the DAS administrator. It is the responsibility of the money distributer of the DAS to send it to all the creditors to whom the registered citizen owes the money. The distribution is done as per the ratio the creditors have agreed to during the agreement.

Our advisors specially trained to guide you for the debt arrangement scheme will make the calculation based on your surplus income and other financial circumstances.  They will analyze your financial commitments based on your other expenses that include house expenses, food, and other bills. It even considers the amount you need to pay in case you have opted for a trust deed. Accordingly, they will divide the leftover surplus income you have after you meet all your financial needs.  Finally, they will let you know the amount for the regular periodical repayment. They will even coordinate with the creditors and repay them the portion of the money they deserve. The debt arrangement scheme is designed in a way the ensures there is a perfect financial balance in your life. You can pay the debt on time and be debt-free within the best possible time. At the same time, one can continue with their other financial commitments.   

DAS tries to design the repayment in a way that the citizen has to pay less as compared to the amount they were entitled to pay to the creditors.

3. Freezing of interests and other charges:

One of the major fears of the debtors is the sudden hike in the rate of interest by the creditors. This complicates the situation and they may end up paying a very high amount or may even fail to repay the complete amount, as the amount grows at a compound interest rate. But the debt arrangement scheme prevents such a situation to arise.

Just like the trust deeds, the debt arrangement scheme Scotland enables freezing of the interests and other related charges once the DPP is approved and accepted by the creditors. So, one needs not to bother about getting a higher repayment amount and a sudden increase in the debt amount. Thus, the debtors can continue with the pre-agreed amount of repayment without being bothered about the hike in the rate of interest or other surplus charges. Although, unlike trust deeds, there is no provision of writing off the remaining amount and the decided amount has to be paid completely within the agreed period. Thus, it usually takes a longer time to complete the repayment process under DAS.

 Unlike other debt solutions like debt management programmes, the creditors can’t re-introduce any interest or other fees during the repayment tenure if the citizen has opted for DAS. This is possible because DAS is a legally binding solution designed by the government.

The interest is not only suspended during the repayment period under the DAS, but they are even canceled after the period is over.

4. Legal protection ensured and Zero enforcement action:

Since the debt arrangement scheme, Scotland is overseen by the government of Scotland itself, it also provides formal legal protection to the debtors from the chasing and hassles from the creditors.  They can’t even file any petition against you at the court or take any legal actions against you to make you bankrupt. Any other court proceedings will also stop.  Unless there are other proceedings related to bankruptcy restrictions order (including an interim order) or you are already bound by a bankruptcy restriction undertaking.

 As per the rules and regulations of the DAS, the creditors should not directly contact you for any debt-related issues. Any creditor may continue to chase you or contact you for any debt related purposes. Under such a situation, your DAS advisor will intervene to stop that chasing of the creditor(s).

DAS even doesn’t let the creditors demand any extra money outside the DPP. Moreover, as the mode of favor through the DPP, any arrestment of your wages will be stopped.

The creditors are given a buffer of 21 days after the issuing of the DPP. Within that period, they have to take the call whether they agree to the proposed amount of monthly repayment or not under the debt arrangement schemes. In case, they refuse to agree and yet the proposed amount is considered to be ‘fair and reasonable’, the DAS Administrator of the Accountant in Bankruptcy (AiB) can reject their decision.

All the more benefit of DAS is that if the administrator approves the proposed amount of repayment, the creditors can’t refuse to accept it. Nor they could take any legal actions for obtaining earnings arrestment or property attachments. Thus, as long as you repay at the regular interval of time throughout the tenure no legal actions can be taken against you from the creditors’ end.

5. Assets remain unaffected:

Unlike many other debt management plans, under DAS the citizens won’t have to involve any of other assets like home, car, land, or other properties as a part of their DPP.

In case you feel the need to sell any of your assets to ensure smooth processing of the periodical repayment method, then you can do. But if you can cope up with the repayment amount, there is no assets or property involvement. Often people choose to sell their assets or property to get a high amount of money.   They use that money in their Debt Repayment Plan to reduce the repayment tenure and become free of debts within the best possible time. Although, people usually don’t sell essential assets under such circumstances as well.

Mostly to repay debts faster under their DPP, people usually sell or mortgage valuable non-essential assets.  This is done to ensure that one needs not to transfer anything to release cash to the creditors.

But the assets considered to be the essential or non-essential one for the debt repayment as a part of DAS is relative. The Debt Arrangement Scheme administrator usually decides this. 

6. Flexibility in the repayment process:

The tenure for repayment of debts under the DPP usually varies between 3 years to 8 years. There is always a possibility that one may come across some challenging instances during the DAS repayment period. These could be extreme health issues, job loss, or a sudden fall in income. Thus, the debt arrangement schemes ensure you get maximum flexibility while repaying the money you owe to the creditors. And if your reasons for failing to repay are ‘fair’, then the period of repayment may be extended up to 12 years. This is mostly done for large debts.

In case there is any such financial constraint during the repayment period under the DAS, your financial advisor will help you. You can easily increase or decrease the amount of periodical repayment based on your circumstances. There is also the provision that allows you to opt for a payment break for six months if you find it difficult to make the payments. Although, the situation needs to be extreme to opt for that. Only if situations like 50% income shock, maternity, paternity issues arise, you can ask for a break.

The added benefit is that the DAS advisor can himself/herself take the call for implementing the flexibility without even the consent of the creditors.

Although, for an extension of the repayment period, the consent of the creditors may be needed. In that case, the DAS financial advisor will get in touch with the creditors to resolve the problems and ensure the extension of the repayment period.

7. Get the best advice and learn finance management:

Not will the financial advisors help you and guide you thoroughly to repay your debts but you will get to learn financial management as well. This financial management skill will be specifically helpful once you are debt-free and then you can manage your finance well.

Although often considered as one of the best alternatives to bankruptcy and other debt management plans, the debt arrangement scheme Scotland has many drawbacks as well. Before you plan to select the scheme to deal with your debts, you are advised to have a look at this section.  Here, you can figure out the probable disadvantages of the scheme.

1. Cost involvement

Unlike many other debt solutions and debt management plans, there is always a debt arrangement scheme fee involved. The debt arrangement scheme Scotland includes a consultation fee and other related fees. There are mostly two kinds of cost which one needs to pay for getting into the DPP. First is the consultation fees that help you to make the proposal for the DPP to the respective creditors. The other one is the fees for the management of the DPP in the subsequent years. The second fee is for the service related to the collection and distribution of the repayments by the advisors.   

Mostly the service charges and the consultation charges related are collected from the amount of periodical repayment.

Apart from this, the payment procedure for the service and consultation charges related to the advisors who help with debt repayment may be different. A couple of advisors may ask for the payment before the process begins. Thus, you should understand and agree to the fee payment procedure before opting for the DPP.

Overall fees related to the whole process of the DPP are usually capped at a maximum of 10% of the repayment amount, one needs to pay. The charge is not only for the consultation and process delivery, but these fees include the cost of legal actions that safeguard you from the hassles of dealing with the creditors directly.

This fee could be avoided in trust deeds and other DMPs, as one can directly propose to the creditors under those schemes.

2. Longer tenure of repayment

The flexibility and the option to go for a longer repayment period can be a drawback for many citizens struggling with debt repayment. Thus the period for which you will have to bear the stress of debt repayment will be longer. Even after your interests and other charges are frozen, you are still liable to pay your full amount of debt with a DPP. It is specifically challenging for people who owe a smaller amount of money as debt.

Since there is no provision of debts being written off after a certain period (which is there for many other debt management plans and solutions), the situation gets difficult for many with passing time.

Moreover, under favorable circumstances, people owing a large number of debts find it difficult to cope up. With passing time, they may face financial issues like retirement or salary reduction, or some other issues. Then under such circumstances, the stress to repay the monthly amount may be challenging. And until and unless, the whole amount of debt is paid off, there is no way of discontinuing the scheme.

3. Negative impact on the credit score and loan borrowing process

Most of the debt solutions and debt management plans affect the credit ratings in a way or the other. Thus, the same holds true for the debt arrangement scheme as well. The details of your DAS will be recorded by the credit agencies in the public DAS register. With records being available on the public register, it may create an impact if you plan to go for a loan during the repayment tenure. Thus, if you feel that you may need to get loans sanctioned in the near future, then it is better not to go for DAS. Creditors may refuse to lend money during the repayment period under the DAS.

 This situation is the same for other debt management plans as well but the long-term commitment is the issue. For other plans, people usually can have a period of 4-5 years or even less for the repayment process of debt.  But the minimum period for people who are DAS registered is 6 years. In case, your repayment period gets extended, longer will be the phase of zero loan provision.  Thus, if you are under this scheme, you won’t have the freedom to get any loan within this period of 6 years or more. Even borrowing money beyond the repayment period may even get difficult under certain circumstances.

4. Need to have more than one debt

Until and unless, you are entitled to repay multiple debts, you can’t opt for the DPP under the debt arrangement schemes. Thus, even if you are struggling to repay a huge amount of debt to a single creditor, you won’t be eligible to go for DAS.

Although, if you owe multiple debts from the same creditor, then you can choose DAS, as, under such a situation, each of your debts will be treated separately.

5. No provision of debt being written off

One of the major advantages of various insolvency procedures is that debt is often written off if any amount is remaining after the repayment period is over. But no such provision is there for the DPP under the DAS. Irrespective of the amount of the debt you owe, and how much financial crisis you face, you are entitled to repay the full amount.

Only after extreme circumstances, there is a slight chance that up to 10 percent of the amount could be written off from the debt and will be considered as the debt arrangement scheme fees. Although, this has zero financial benefits to the debtors, as they have to pay the amount in full only.

The only time there is a possibility of your debt being written off is an excessive longer period of repayment. If the advisor feels that the repayment period is being unreasonably long, like 12 years or more, they may choose to consider.  They even may allow the debt to be partially written off. 

6. Mandatory citizenship of Scotland

Only and only a citizen of Scotland is eligible to get help with debt using the DAS. No other citizen could apply for the DPP under this DAS. Although, there have been no specific DAS rules set to judge citizenship. But the citizenship criteria mostly include these two factors:

  1. the ones who have lived there for a prolonged period and/or
  2. have a permanent job there are to be considered.

7. One application in a year

One can make only one application for a Debt Arrangement Scheme once a year. Even if you are facing an acute debt crisis and feel the extreme need to opt for the DAS, you can’t do that, if you have already done that for another debt within the last one year. Even if your application for the DAS gets rejected, then also you can’t apply immediately. You have to wait for a year to complete to re-apply.

This rule of once a year application has been done intentionally implemented by the government. This ensures that people don’t exploit the provisions of DAS. Often people just use this scheme as a tool to postpone the court proceedings over and again.

To figure out whether the debt arrangement scheme Scotland could be the right choice for an individual or not, one can check out the eligibility criteria for the same.  The following criteria should be fulfilled to be eligible for the DPP under DAS:

  1. Must be a permanent citizen of Scotland
  2. Are indebted to multiple creditors or owe multiple debts to a single creditors
  3. Must have the financial strength and resources to afford the amount for periodic repayment
  4. The monthly disposable income of the individual should not be less than £100
  5. The individual is unable to afford the current repayment level but should be able to afford the full repayment over a prolonged period.

While you sign up for the DPP under DAS, you have to maintain the monthly repayment procedure and pay the decided amount on time.  10 per cent of the affordable amount will be retained as the administration cost. Out of that 10 per cent cost, 8% is assigned for the payment distributor. Remaining 2 per cent is sent to the Accountant in Bankruptcy. 
Even if one fulfills all the above-mentioned criteria, yet one can’t go for DAS if they have these following obligations:

  1. Already into Protected Trust deeds
  2. Not discharged after being declared bankrupt
  3. You are being time-bound to pay directions or orders
  4. Have debt obligations under a conjoined arrestment order.

Thus, if any of these factors are applicable in your situation, DAS will be denied to you.

On the other hand, if you fulfill both these conditions:

  1. fitting into the eligibility criteria and
  2. not having the other mentioned obligations

 you can go for DAS for the repayment of unsecured loans or debts

  • Following unsecured debts can be repaid using the DPP under the DAS
  • The debt against credit card and store card
  • Bank overdrafts
  • Personal loans
  • Payday loans

Once you have analyzed all your circumstances and financial situations, you can accordingly good to go for the debt arrangement scheme Scotland. With a very few simple steps, you can get yourself registered for the DAS and start repaying your debt:

1. Get in touch with a DAS money adviser

Since DAS is a government-backed scheme, it has multiple legal perspectives involved. One needs to be extremely well versed with the pros and cons of this scheme before they choose to repay the debt with the help of this scheme. Thus, it is very important to contact a DAS financial advisor.

Moreover, one can only apply for DAS with the help of an advisor as the independent application is not accepted. We have a team of highly experienced financial advisers who can help you throughout the process.

2. Analyze your situation and make a budget

Our highly experienced team of financial advisors will analyze your income, expenses, and various financial commitments. Accordingly, they will set up a budget for you for the repayment process. Based on your economic situation, they will decide an amount for periodical repayment (mostly monthly, maybe weekly in some cases).  This monthly amount of repayment will be easily affordable for you.

In case, our advisors feel that DAS is not the best possible solution for your situation to repay the debt, they may advise something else.

3. Create a Debt Arrangement Scheme (DAS)

If our advisor finds your situation to be tackled through DPP under DAS, they will plan the scheme accordingly. The scheme will be designed in a way so that your creditors receive an equal amount of repaid money from your surplus income. An emergency and with an extra surplus is also created. This is done for handling any financial emergency.

4. Reaching out to the creditors

Our advisors will contact your creditors and they will be informed about the amount of monthly repayment. They need to respond within 21 days. If they don’t respond, it is considered that they have agreed to the proposed amount of monthly repayment.

5. Approval of DAS

Once the creditors have agreed to the conditions, the proposed plan under DAS is then sent to the Debt Arrangement Scheme Administrator, who approves it. On its approval, the interests and other related charges of those debts are frozen.

6. DAS register

Once Debt Arrangement Scheme Administrator has approved the plan, it is then recorded under the DAS register. Then we set up a regular monthly payment arrangement for you. This is done to collect your surplus income to be sent to the creditors. We have highly experienced distributors who send money to the creditors. And this process continues until you are debt-free.

There are several ways to deal with your debt crisis in Scotland. Our high experienced debt advice team will help you figure out whether the debt arrangement scheme Scotland will work the best for you or not. Our team will explain to you the very details of the very available options and let you decide whether to go for DAS or not. We tell you both the advantages and the drawbacks of the scheme. We even guide them to take the call accordingly. We understand that your choice may have multiple positive or negative impact on your financial status, thus we explain to you everything. We ensure confidential and customized guidance for all our customers.

If our team feels that the DAS will work the best for you, we will recommend you to opt for it. If you choose to go with it, we will help you get in touch with the trained DAS financial advisor who will guide you thereafter. Our team well versed with various legalities involved in this government-supervised formal debt repayment process.

To reduce financial stress, we also ensure that the debtor has to pay a very low monthly repayment amount during the tenure of repayment.

For any sort of guidance and help related to DAS, you can contact us at the following…

Call us: 01615327813 or

Email us at:-

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