Debt Arrangement Schemes Scotland (DAS)

The Debt Arrangement Scheme in Scotland allows individuals with unaffordable debt to lower their monthly payments and begin to pay off debt within a reasonable amount of time.

How do Debt Arrangement Schemes in Scotland work?

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.

Who qualifies for the Debt Arrangement Scheme

✔️ You live in Scotland.

✔️ You are not currently in another form of debt repayment such as a Trust Deed in Scotland.

✔️ You have spoken to an expert debt advisor such as DAS Scotland

✔️ You have at least one debt.

✔️ You can repay your debts after you’ve paid your priority bills and living expenses.

 

Advantages of DAS

✅ Your lenders are legally obligated to no longer contact you via any method of communication.

✅ Repayment based on what you can afford.

✅ Your home will not be affected.

✅ Interest and charges legally frozen.

✅ You can apply for a six-month payment holiday, should you find it difficult to repay, or experience a debt emergency.

Disadvantages of DAS

❌  Unlike Trust Deeds and Sequestration in Scotland, a Debt Arrangement Scheme lasts until the debt is cleared.

❌  The DAS will show on your credit rating for a period of six years.

❌  You will not be able to apply for credit for a further 6 months after being discharged from your Debt Arrangement Scheme.

Find Out More

Contact an expert money advisor at DAS Scotland to find out more about debt arrangement schemes in Scotland and all the other debt solutions available to you.

We are here to help you make an informed decision based on your affordability and support you every step of the way. If you would like a fresh start, get in touch today.

📞 0131 263 0245

🕕 You can also try using our Debt Repayment Calculator tool