Millions of pounds of debt in Scotland is repaid every year through the Debt Arrangement Scheme — a statutory programme that freezes interest and charges while someone clears what they owe at a pace they can genuinely afford. For anyone in Scotland dealing with multiple creditors and struggling to make headway, understanding how DAS works is a practical starting point before speaking to a regulated money adviser.
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What the Debt Arrangement Scheme Is
The Debt Arrangement Scheme (DAS) is a Scotland-only statutory programme introduced under the Debt Arrangement and Attachment (Scotland) Act 2002. It allows someone with unmanageable debt to repay everything they owe through a structured plan — called a Debt Payment Programme (DPP) — while interest, fees, and charges on those debts are frozen for the duration of the plan. The DAS Register, which is the public record of active programmes, is maintained by the Accountant in Bankruptcy, Scotland's statutory body for personal insolvency and debt solutions.
Unlike Scotland's two formal insolvency routes — a Protected Trust Deed and Sequestration (the Scottish equivalent of bankruptcy) — DAS does not involve insolvency. The full amount owed is repaid rather than written off, which is a fundamental distinction. It is also a Scotland-only scheme: people living in England, Wales, or Northern Ireland do not have access to it and would need to ask a regulated adviser about alternatives such as Debt Management Plans, Debt Relief Orders, or Individual Voluntary Arrangements.
How a Debt Payment Programme Works
The core structure
The central feature of DAS is the Debt Payment Programme. This is a formal repayment plan that sets out a single monthly payment the person can afford, which a payment distributor then divides among the creditors included in the programme. Once a DPP is approved, creditors are legally prevented from taking enforcement action — including sheriff court proceedings, wage arrestments, and bank account freezes — for any debt covered by the plan, provided payments continue.
This legal protection is one of the most significant practical features of DAS compared with an informal repayment arrangement, where creditors retain the right to pursue enforcement at any point.
Interest and charges freeze
From the point a DPP is approved, all interest, fees, penalties, and charges on the included debts are frozen. Every payment made through the programme reduces the actual balance owed rather than servicing ongoing interest. This is particularly relevant for anyone carrying high-interest credit card debt or personal loans, where standard repayments can be consumed largely by interest with little impact on the underlying balance.
Under the Debt Arrangement and Attachment (Scotland) Act 2002 and its associated regulations, any interest and charges that accrued before the DPP was approved but were frozen during the programme may be written off on successful completion — this is commonly referred to as the interest waiver.
Once a Debt Payment Programme is approved, creditors included in the programme cannot pursue enforcement action — including sheriff court action, wage arrestment, or bank account freezes — for as long as payments are maintained and the DPP remains active.
Exploring debt options in Scotland?
UK Debt Team refers people to FCA-regulated debt advice firms who can explain how DAS and other solutions apply to a specific situation — no obligation, no judgement.
Eligibility for the Debt Arrangement Scheme
Who can apply
To be eligible for DAS, a person must be resident in Scotland. There is no upper limit on the total amount of debt that can be included in a DPP — this distinguishes DAS from some other formal arrangements that cap qualifying debt. The minimum debt threshold to apply is £3,000. The person must also be able to demonstrate they can make regular payments towards their debts, even if those payments are lower than what creditors are currently demanding.
DAS is available to individuals and sole traders. There are also specific provisions under the DAS regulations for partnerships and limited liability partnerships. There is no fixed minimum income requirement, but the proposed DPP must be realistic and sustainable — an approved money adviser assesses this as part of the application.
What debts can be included
Most types of unsecured consumer debt can be included in a DPP: credit cards, personal loans, overdrafts, utility arrears, catalogue debt, and similar. Some categories of debt cannot be included — among them student loans, child support arrears, court fines, and certain liabilities owed to HMRC. Secured debts such as a mortgage or hire purchase agreement on a vehicle are generally excluded, though mortgage arrears may be includable in some circumstances depending on the specifics of the case.
The money adviser preparing the application will identify which debts are eligible and structure the DPP proposal to cover as many as possible.
The Debt Arrangement Scheme operates exclusively in Scotland. It is administered under Scottish legislation and has no equivalent operating under the same name in England, Wales, or Northern Ireland.
Applying for DAS: The Process
Step 1 — Contact an approved money adviser
An application for DAS cannot be submitted directly by an individual without professional support. The starting point is to contact an approved money adviser — a debt adviser specifically registered to assist with DAS applications. Many local authorities in Scotland employ money advisers who offer this service at no charge. Free advice is also available through Citizens Advice Scotland and other not-for-profit organisations.
The money adviser will carry out a full assessment of the person's income, expenditure, and debts using the Common Financial Tool (CFT) — the standardised method used across Scotland for calculating affordable debt repayments. This assessment determines what a realistic monthly payment would look like.
Step 2 — Preparing and submitting the DPP proposal
Once the assessment is complete, the money adviser prepares a formal DPP proposal and submits it to the Accountant in Bankruptcy through the DAS online system. Creditors are then notified and given a set period to respond — they may agree to the proposal or object.
If all creditors agree, the DPP is approved automatically. If some creditors object, the Accountant in Bankruptcy can still approve the DPP if it is considered fair and reasonable — a process known as discretionary approval. This means a single uncooperative creditor cannot block an otherwise reasonable programme simply by refusing to engage.
Step 3 — Making payments and completing the programme
Once the DPP is active, a single monthly payment is made to the payment distributor, who allocates funds to each creditor. The programme continues until all included debts are repaid in full. The length depends entirely on the total debt and the monthly payment amount — there is no fixed maximum term under DAS, though the programme is expected to represent a genuine and realistic path to full repayment.
If circumstances change — for example, a reduction in income following a job loss, or a significant increase in earnings — the DPP can be varied. A reduction in payment requires the Accountant in Bankruptcy's approval; an increase would accelerate completion. Anyone whose circumstances change should contact their money adviser promptly rather than allowing payments to fall into arrears.
Exploring debt options in Scotland?
UK Debt Team refers people to FCA-regulated debt advice firms who can explain how DAS and other solutions apply to a specific situation — no obligation, no judgement.
DAS Compared to Other Scottish Debt Solutions
Scotland has three main formal debt solutions available to individuals: DAS, the Protected Trust Deed, and Sequestration. Each operates on different principles and carries different consequences.
DAS is the only one of the three that does not involve insolvency. A Protected Trust Deed involves a trustee taking control of assets and distributing them to creditors — remaining debt may be written off after typically four years, but the person is formally insolvent throughout. Sequestration similarly involves formal insolvency, with consequences for credit records and in some cases employment or professional licences. Under DAS, the person is not insolvent at any point; they are repaying through a managed, legally protected programme.
The characteristics of each solution differ significantly depending on total debt level, income, asset ownership, and personal circumstances. A regulated money adviser is the appropriate person to explain how each option applies to a given situation — that case-specific assessment is outside the scope of a general information page.
Entering a Debt Payment Programme under DAS will be recorded on a person's credit file and will affect the ability to obtain new credit during the programme. The Accountant in Bankruptcy maintains a public DAS Register, which is searchable online.
Costs and Fees Under DAS
There is no direct application fee charged to the person applying for DAS. However, an administration fee is deducted from each payment made through the DPP to cover the cost of the payment distributor's services. Under the DAS regulations, this fee is currently set at 22% of each payment, meaning that for every £100 paid into the DPP, £22 covers administration and £78 is distributed to creditors.
This fee structure means the total amount paid over the life of the DPP will be higher than the face value of the debts included. Because interest is frozen, however, the overall cost may still compare favourably with continuing to service high-interest debts outside any formal arrangement — particularly where minimum payments are doing little to reduce the underlying balances. A money adviser can model both scenarios before any application is made.
Frequently Asked Questions
Does DAS affect a credit rating?
Yes. Entering a Debt Payment Programme is recorded on a person's credit file and will appear on the public DAS Register maintained by the Accountant in Bankruptcy. This is likely to affect the ability to obtain new credit while the programme is active. The exact duration of any credit file impact depends on when the DPP completes and how credit reference agencies record the information at that point.
What happens if payments cannot be maintained?
If payments are missed and the DPP is not varied in time, it can be revoked. Once a DPP is revoked, the legal protections it provided end, and creditors can resume enforcement action — including wage arrestment and court proceedings. If circumstances change, the appropriate step is to contact the money adviser immediately to apply for a variation before the programme falls into arrears.
Can a sole trader apply for DAS?
Yes. Sole traders resident in Scotland can apply, and the DAS regulations also include specific provisions for partnerships and limited liability partnerships. The money adviser will assess both personal and business finances as part of the application, since both personal and business-related debts may be includable depending on their nature.
Is DAS available in England or Wales?
No. DAS is a Scottish statutory scheme operating under Scottish legislation. People in England or Wales looking for a comparable managed repayment option may wish to speak to a regulated debt adviser about Debt Management Plans (DMPs), which similarly involve a single monthly payment distributed among creditors — though DMPs are informal arrangements and do not carry the same statutory protections as a DAS Debt Payment Programme.
Free Debt Advice in Scotland and the UK
Free debt advice — including on DAS and other Scottish debt solutions — is available from a number of regulated and charitable organisations:
- MoneyHelper (moneyhelper.org.uk) — the Money and Pensions Service, a government-backed service
- StepChange Debt Charity (stepchange.org) — free debt advice and managed repayment options
- Citizens Advice Scotland (cas.org.uk) — includes access to approved money advisers for DAS
- National Debtline (nationaldebtline.org) — free advice by phone and online, including Scotland-specific information
These organisations provide advice at no cost and are regulated or accredited for debt advice. Anyone unsure which formal solution applies to their circumstances is encouraged to contact one of these services before making any application.
Speak to a Regulated Specialist
UK Debt Team is a debt advice referral and lead generation business. Information on this page is provided for general informational purposes only — UK Debt Team does not assess individual circumstances or provide debt advice directly. Where someone is considering a formal debt solution such as DAS or wishes to understand their options further, UK Debt Team can connect them with FCA-regulated firms and approved money advisers who are qualified to carry out a proper assessment.