The Debt Arrangement Scheme (DAS) is a statutory repayment plan for those with unaffordable debts in Scotland. The DAS in Scotland is endorsed by the Scottish government.
It is not a type of personal insolvency like Sequestration or a Protected Trust Deed. This means that if you enter the Debt Arrangement Scheme in Scotland, you repay your debts in full, however a DAS does have many benefits.
With a debt arrangement scheme you repay your unaffordable debts through a debt payment programme.
If approved for the debt arrangement scheme, you make a financial commitment to the debt payment programme, through which you will pay back what you owe in regular instalments. Importantly, your repayment plan will be based on your affordability, so the payments that you agree will be manageable.
The debt arrangement scheme is Scotland protects you from your creditors taking action against you to recover the debt. When the debt arrangement scheme is in place, all interest and fees are frozen and will then be written-off completely, if you finish the debt payment programme.