If you're finding it hard to keep up with debt repayments, the Debt Arrangement Scheme (DAS) is a Scottish Government programme that could help you repay what you owe at a pace you can afford - without the risk of losing your assets or being made bankrupt. This guide explains how DAS works, what to expect, and how Glasgow Credit Union can support you.
What is the Debt Arrangement Scheme?
The Debt Arrangement Scheme (DAS) is a statutory debt management programme available only in Scotland. It was introduced by the Scottish Government to give people a realistic and protected way to repay their debts in full over time.
Under DAS, you enter a Debt Payment Programme (DPP) - a formal arrangement that consolidates your debt repayments into a single affordable monthly payment. A money adviser helps you set this up, and once it is approved, your creditors are legally required to freeze all interest, fees and charges on your debts.
Unlike some other debt solutions, DAS is not an insolvency process. You repay the full amount you owe, but you are protected from enforcement action by your creditors while the programme is in place.
Who is DAS for?
DAS may be suitable if you:
- Live in Scotland
- Have more than one unsecured debt you are struggling to manage
- Have a regular income and can make a monthly contribution toward your debts
- Want to repay your debts in full but need more time or a reduced monthly payment
- Want to avoid insolvency, sequestration (Scottish bankruptcy) or a trust deed
DAS is not suitable for everyone. If your debts are very large relative to your income, or if you have no realistic way of repaying them in full, a different solution such as a Protected Trust Deed or sequestration may be more appropriate. A free money adviser can help you understand your options.
How does a Debt Payment Programme work?
Here is a overview of the DAS process:
- Speak to an approved money adviser. You must apply for DAS through a qualified money adviser, not on your own. They will review your income, expenses and debts to assess whether DAS is right for you. This service is available free of charge.
- Your adviser prepares a DPP proposal. They calculate what you can reasonably afford each month after essential living costs and draft a repayment programme for submission to the DAS Administrator (Accountant in Bankruptcy, or AiB).
- Creditors are notified and invited to consent. Your creditors have 21 days to respond. If a majority of creditors (by debt value) agree - or do not object - the programme is approved. In some cases, even dissenting creditors can be bound in.
- Your DPP is approved and legally protected. Once approved, your creditors must freeze all interest, fees and charges. They cannot take further action to recover the debt while you keep to the terms of your programme.
- You make one monthly payment. Payments are made to an approved payment distributor, who passes the money to your creditors on your behalf. You deal with one payment, not multiple creditors. Please be aware that fees are deducted from your payments by the payment distributor and the DAS Administrator before the remainder is passed to your creditors - so your creditors will not receive the full amount you pay each month. However, your debts will still be fully discharged at the end of the programme.
- On completion, your debts are cleared. When you have made all payments under the programme, the debts included are treated as fully repaid and legally discharged - even though a portion of each payment has gone toward scheme fees rather than directly to creditors.
Key features of DAS at a glance
- Interest and charges are frozen from the date of approval - you repay only what you owed when you entered DAS.
- Creditors cannot take enforcement action (such as wage arrestment or raising a court action) while your DPP is in force.
- You are not declared insolvent - DAS does not appear on the Insolvency Register.
- DAS is recorded on the DAS Register, a public register maintained by AiB.
- Your home and other assets are not at risk under DAS.
- Scheme fees are deducted from your monthly payment before funds are distributed to creditors. These cover the payment distributor and DAS Administrator. Your debts are still fully discharged on completion.
- If your circumstances change, your DPP can be varied (payments reduced or increased) or paused temporarily.
Understanding DAS fees
It is important to understand that your monthly DAS payment does not go entirely to your creditors. A portion is deducted to cover the costs of running the scheme:
Payment Distributor fee - charged by the organisation that receives and distributes your payments to creditors (currently 2% of each payment).
DAS Administrator fee - charged by the Accountant in Bankruptcy for administering the scheme (currently 2% of each payment).
This means that, in practice, your creditors receive around 96p of every £1 you pay. However, this does not affect your position - your debts are still treated as fully discharged when you complete the programme. The key benefit is that creditors agree to accept this in return for interest and charges being frozen and enforcement action being halted.
Example: if you pay £300 per month, approximately £12 covers scheme fees and £288 is distributed to your creditors. Over time, this means your programme may run slightly longer than it would without fees — your money adviser will factor this into your DPP proposal.
What debts can be included in DAS?
Most unsecured debts can be included in a DPP, for example:
- Credit cards and store cards
- Personal loans — including a loan from Glasgow Credit Union
- Overdrafts
- Council tax arrears
- Utility bill arrears (gas, electricity, water)
- Buy now, pay later agreements
- Payday loans
Secured debts (such as a mortgage or secured loan) and certain priority debts are generally handled separately and are not included in a DPP. Your money adviser will help you understand which of your debts can be covered.
Things to consider before applying
It will take longer to become debt-free. Because you are repaying your debts in full, a DPP often runs for several years. Your money adviser will give you a realistic timeline based on your individual circumstances.
Your credit file will be affected. A DPP will be recorded on your credit file and will make it harder to access new credit during the programme and for some time after. This is true of most formal debt solutions.
You must maintain your payments. If you miss payments without getting a variation agreed, your DPP could be revoked. This would leave your creditors free to resume enforcement action and interest charges would recommence.
It is on the public DAS Register. Your DPP will appear on the DAS Register, which is publicly searchable. Unlike sequestration, it does not appear in the Edinburgh Gazette or on the Insolvency Register.
You need a regular income. DAS requires you to make ongoing payments. If you have no income or your income is very irregular, it may not be viable.
Not all creditors need to agree. While creditor consent is sought, the DAS Administrator can approve a programme even if some creditors object, provided the terms are fair and reasonable.
How does DAS compare to a trust deed?
Both DAS and a Protected Trust Deed are formal Scottish debt solutions, but they work in very different ways. Here is a simple comparison:
| Debt Arrangement Scheme (DAS | Protected Trust Deed | |
| Repayment | Full debt repaid | Portion written off at end |
| Typical duration | Varies (based on what you can afford) | Usually 4 years |
| Assets at risk | No | Yes |
| Insolvency? | No | Yes |
| Interest frozen | Yes, from approval | Yes |
| Public register | DAS Register (not Insolvency Register) | Register of Insolvencies and Edinburgh Gazette |
| Minimum debt level | No minimum | Typically £5,000+ |
Where to get free, impartial advice
You must use an approved money adviser to apply for DAS. Free advice is available from:
- Citizens Advice Scotland — www.cas.org.uk
- Money Advice Scotland — www.moneyadvicescotland.org.uk
- StepChange Debt Charity — www.stepchange.org
- National Debtline — www.nationaldebtline.org
- Accountant in Bankruptcy (AiB) — www.aib.gov.uk (DAS Administrator and public register)
How to get in touch with us
If you are worried about debt whether you have already missed payments or you can see difficulties ahead please reach out to us as early as possible. Our team can talk through your situation with you and help signpost you to the right support. You can contact us in the following ways:
- Raise a support request
- By calling us on 0141 274 9933