Debt Arrangement Scheme (DAS)

What the Debt Arrangement Scheme is

The Debt Arrangement Scheme (DAS) is Scotland's formal debt management scheme. It's a statutory programme run by the Accountant in Bankruptcy (AiB) under the Debt Arrangement and Attachment (Scotland) Act 2002. Through DAS, you make a single affordable monthly payment, all interest and charges are frozen by law, and creditors cannot take enforcement action against you.

Unlike an English Debt Management Plan (which is informal and not legally binding), DAS is backed by statute. Once your Debt Payment Programme (DPP) is approved, creditors are required to accept the arrangement and stop adding interest or chasing the debt. This is the key differentiator: DAS gives you the legal protection of an insolvency solution without the credit consequences of a formal write-off arrangement.

How DAS works in practice

You can't apply for DAS directly — you must use an approved "Money Adviser." Many are based in Citizens Advice Bureaux, councils, or free debt charities. The process moves through clear stages:

1. Find a DAS Money Adviser. Free DAS advice is available through Citizens Advice Scotland and local council money advice teams. There are also paid DAS providers, but the free route is widely used.
2. Full financial assessment. The Money Adviser builds a picture of your income, essential outgoings, debts and circumstances.
3. Drafting the Debt Payment Programme. The Adviser drafts a DPP — your formal proposal — setting out a single monthly payment that will repay all your debts over a reasonable period.
4. Creditor approval period. Creditors have 21 days to accept or object to the DPP. If creditors representing less than 51% of the debt object, the AiB can still approve the DPP.
5. AiB approval. The Accountant in Bankruptcy reviews the DPP and approves it if reasonable.
6. Making payments. You pay your agreed monthly amount, usually to a Payments Distributor who divides it between creditors.
7. Completion. When you've paid the full agreed amount, the DPP completes successfully and you're debt-free with no write-off involved.

Who DAS tends to suit

DAS is aimed at people in Scotland who can repay their debts in full given enough time, but need legal protection from interest, charges, and enforcement while they do it:

• You live in Scotland
• You have at least one debt and a steady income
• Your income covers essential outgoings with something left over for debt repayment
• You'd be able to clear all your debts within a reasonable period (typically 5-10 years)
• You want to avoid a formal insolvency arrangement and the credit file consequences that come with it
• You're struggling with interest and charges making the debt unmanageable, even though the principal would be payable

What DAS costs

DAS is comparatively cheap compared to other formal solutions. There's an administration fee (currently 22% of payments, split between the Money Adviser and the Payments Distributor) which comes out of your monthly contribution rather than being charged on top. There's no application fee, no setup fee for free Money Advisers, and the administration fee is regulated by the AiB.

If you use a free Money Adviser (such as Citizens Advice Scotland or a council money adviser), the only deduction from your payments is the Payments Distribution Fee. This makes DAS one of the cheapest formal Scottish debt routes.

How long DAS lasts

Unlike a Trust Deed (4 years) or sequestration (typically 12 months), DAS has no fixed term. The DPP lasts until you've repaid your debts in full at the agreed monthly rate. In practice, most DPPs run 5-10 years depending on debt size and affordable payment level. AiB statistics show the average DPP is approximately 7 years.

What happens to your home in DAS

Your home is not at risk in DAS — this is one of its major advantages over other formal solutions. Because no debt is written off and creditors will eventually be repaid in full, there's no equity contribution requirement and no risk to your property. Mortgage and secured loan payments continue as normal outside the DPP.

Which debts DAS can cover

DAS can cover almost all debts a person owes — both priority debts (council tax, mortgage arrears, utility debt) and non-priority unsecured debts (credit cards, loans, overdrafts). This is broader coverage than most other formal solutions. The Money Adviser will assess which of your debts can be included and structure the DPP accordingly.

How DAS affects your credit, home and work

DAS is recorded on the public DAS Register, which lenders can check. It will appear on your credit file for 6 years from the start date. While in DAS, getting new credit will be harder and more expensive — though as no debt is being written off, the long-term credit impact is generally less severe than for an IVA, Trust Deed, sequestration or bankruptcy.

If DAS doesn't work out

If your circumstances change and you can't maintain DAS payments, contact your Money Adviser immediately. The DPP can be varied — payments reduced, term extended, or in some cases payment breaks granted. If the DPP fails entirely, interest and charges will become payable again from the date of failure (not retrospectively), and you may need to consider a different solution such as a Trust Deed or sequestration.

How UK Debt Team can help

We're an introducer, not a debt advice service. Deciding whether DAS is the right Scottish solution — versus a Trust Deed, sequestration, MAP, or self-help — is the role of a regulated Scottish debt adviser, not us.

What we do is connect people seeking help with regulated solution providers. There's no cost or obligation to use the “Speak to a DAS specialist” button below. If you'd rather go straight to free regulated debt advice, Citizens Advice Scotland and the other organisations listed below are an excellent place to start.