What the Debt Arrangement Scheme Actually Is
If you live in Scotland and are struggling to repay multiple debts, the Debt Arrangement Scheme (DAS) is one of the formal options available to you. It is a Scottish Government programme that lets you repay everything you owe in full, at a pace you can afford — while legally freezing interest, fees, and charges from the moment your application is approved.
DAS is not debt write-off. It does not reduce the amount you owe. What it does is give you a legally protected repayment plan — called a Debt Payment Programme (DPP) — and stop creditors from taking enforcement action (such as wage arrestment or bank account freezes) while the plan is active. For people who can afford to repay but need more time and breathing room, it is one of the few statutory tools designed specifically for that situation.
It is worth noting from the outset: DAS is only available to people living in Scotland. Residents of England, Wales, and Northern Ireland are not eligible, and different debt solutions apply in those parts of the UK.
How a Debt Payment Programme Works
To access DAS, you apply through a Money Adviser — an approved professional (often from a regulated firm, a local authority money advice service, or a charity) who assesses your income, expenditure, and debts and submits the application on your behalf.
The Money Adviser calculates what you can realistically afford to pay each month after essential living costs. That single monthly payment is then distributed to all your creditors automatically by a DAS Administrator — there is no need to manage separate payments to different lenders yourself.
Creditors have the opportunity to object to the proposed repayment plan, but under the DAS rules, the Accountant in Bankruptcy (AiB) — the Scottish Government agency that administers DAS — can approve a plan even if creditors object, provided the proposal meets a fair and reasonable test. This is sometimes called a deemed consent provision and it gives the scheme more teeth than informal payment arrangements.
The repayment period is however long it takes to clear the total debt at your affordable monthly payment. There is no fixed maximum term set in law, though the AiB does consider whether the plan is realistic. Plans running many decades would not typically be approved.
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Who Can Apply for DAS
To be eligible for a Debt Payment Programme through DAS, you generally need to meet the following criteria according to the Accountant in Bankruptcy:
- You must be a resident of Scotland
- You must have more than one debt (although single-debt DPPs are technically possible in some circumstances)
- You must be able to demonstrate a reasonable level of disposable income — enough to make meaningful repayments
- Your debts should typically be at least £5,000 in total before approval is likely
- You must not already be subject to a sequestration (the Scottish equivalent of bankruptcy) or a Protected Trust Deed
Sole traders and partnerships can also apply for DAS in some circumstances, under a slightly different process to the one used for individuals. The eligibility criteria and process differ, and a Money Adviser would assess the specifics.
What Debts Can Be Included
Most types of unsecured debt can be included in a DPP, including:
- Credit cards and store cards
- Personal loans and overdrafts
- Catalogue and buy-now-pay-later debt
- Council tax arrears
- HMRC debts (in some cases)
- Utility bill arrears
- Payday loans
Secured debts — such as your mortgage or a secured loan — are generally not included in a DPP. Your mortgage lender's rights over your property are not affected by DAS. If mortgage arrears are an issue, separate advice from a regulated specialist would be needed.
Some debts may also be excluded by law, including certain student loans, fines imposed by courts, and child maintenance arrears. A Money Adviser will confirm which of your specific debts can and cannot be included when assessing your case.
Struggling with debt in Scotland?
We refer you to regulated debt help specialists who can review your situation properly — no obligation, no judgement.
The Impact on Your Credit File and Daily Life
A DPP is recorded on the DAS Register, which is a publicly accessible register maintained by the Accountant in Bankruptcy. This means any lender who searches the register will be able to see that you are in a DPP.
It will also be recorded on your credit file and will affect your ability to obtain new credit during the programme. Most people in a DPP would find it difficult to get new loans, credit cards, or a mortgage while the plan is active, though this varies depending on individual credit histories and lenders' own criteria.
The record on your credit file typically remains for six years from the date the entry is made — which could mean it persists for some time after the DPP has been completed, depending on how long the plan runs.
Day-to-day, many people find that the structure of a DPP reduces financial stress considerably. A single monthly payment replaces the pressure of managing multiple creditors, and the freeze on interest means the debt does not keep growing while you repay it.
How DAS Compares to Other Scottish Debt Solutions
Scotland has a distinct set of formal debt solutions compared to England and Wales. For context, the main options available to individuals in Scotland are:
- Debt Arrangement Scheme (DAS) — repay in full with interest frozen; no debt is written off
- Protected Trust Deed — similar to an IVA; a portion of debt is written off after typically four years; can affect your home if you have equity
- Sequestration (Scottish Bankruptcy) — formal insolvency; debt written off but significant consequences for assets; a Minimal Assets Process (MAP) route is available for those with very low assets and income
DAS sits in the middle: it is more protective than an informal DMP, but does not involve writing off any debt in the way that a Trust Deed or sequestration might. It is often described as most suitable for people who have a steady income but need more time — and the legal protection that interest-freezing provides — to clear what they owe.
The choice between these routes depends heavily on individual circumstances — the level of debt, assets owned, income, and long-term financial outlook. A regulated Money Adviser or debt specialist would need to assess a specific situation before any formal route could be recommended.
How to Access the Debt Arrangement Scheme
You cannot apply for DAS directly without going through an approved Money Adviser. Money Advisers who are authorised to submit DAS applications include:
- Local authority money advice services (many Scottish councils offer this free of charge)
- Regulated debt advice firms
- Some citizens advice bureaux in Scotland
The Money Adviser will carry out a full assessment of your income and outgoings, help you identify all qualifying debts, and submit the DPP application to the AiB on your behalf. Once submitted, creditors are notified and given the opportunity to accept or object. The AiB then makes a decision, applying the fair and reasonable test if creditors object.
There is no application fee payable by the debtor to the AiB for a DAS application. However, Money Advisers who are commercial firms may charge fees for their services — it is important to understand the cost structure before engaging any firm. Free Money Advice is available through local councils and free-sector organisations.
Free Debt Advice in Scotland
Before committing to any formal debt solution, it is worth understanding all the options available. Free, impartial debt advice is available from the following organisations:
- MoneyHelper — the government-backed money guidance service at moneyhelper.org.uk
- StepChange Debt Charity — provides free debt advice and can help with DAS applications
- Citizens Advice Scotland — local bureaux across Scotland offer free money advice
- National Debtline — free helpline and online resources for people in debt across the UK
These organisations are entirely free to use and are not commercial referral services. They can help assess whether DAS, a Trust Deed, sequestration, or an informal arrangement is most appropriate for a given situation.
UK Debt Team is not a debt advice provider. We are a referral business that connects people with regulated debt help specialistss. If the information on this page has prompted questions about your own situation, the next step is to speak with a regulated specialist who can carry out a proper assessment.