DAS as a statutory scheme
DAS is a statutory scheme created by Scottish legislation. It sits between informal negotiation and formal insolvency: it gives you legal protection while you repay debts in full at a reduced rate.
DAS is administered by the Accountant in Bankruptcy (AiB) — the same body that oversees Trust Deeds and sequestration in Scotland.
The key benefit of DAS over an informal DMP is that interest and charges are frozen legally, not just by voluntary agreement. Creditors cannot restart interest during the DPP.
The Debt Payment Programme (DPP)
The DPP is the actual repayment plan under DAS. You make one monthly payment to a DAS Administrator, who distributes it to your creditors on a pro rata basis.
The DPP runs until all debts are repaid in full at the agreed monthly rate. Because interest is frozen, the balance actually reduces each month.
The DPP is protected: creditors cannot chase you for the debts covered while the DPP is active. They cannot take court action, instruct enforcement agents, or add interest.
DAS vs Trust Deed vs Sequestration
DAS repays debts in full over time (with interest frozen). Trust Deeds and sequestration involve writing off some or all debt.
DAS is appropriate where you can afford to repay debts in full at a reduced rate over a reasonable period. If you cannot, a Trust Deed or sequestration is more suitable.
DAS is not an insolvency procedure. It appears on your credit file but does not carry the same longer-term financial consequences as insolvency routes.