Alongside trust deeds and sequestration, debt arrangement schemes are one of the main debt solutions for people in Scotland. Here’s all you need to know about debt arrangement schemes.
If you need a helping hand to get out of debt, a debt arrangement scheme could be a good option for you. Debt arrangement schemes, endorsed by the Scottish government, are designed to help you pay back your debt at regular, manageable intervals – without the threat of legal action hanging over you. Debt arrangement schemes are for individuals and businesses.
With a debt arrangement scheme you repay your debt through what’s known as a debt payment programme.
If approved for a debt arrangement scheme, you commit 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 disposable income, so will be manageable payments.
Through a DAS Scotland, you will be protected 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 be written-off if you fully complete the debt payment programme.
The official Trust Deed Scotland® are the number 1 Trust Deed advice company, having helped over 20,000 people in Scotland. With over 2,500 5* Reviews. Owned and operated in Scotland our advisors are qualified debt advisors able to discuss the Pros, Cons of all Scottish debt solutions.
Yes. Debt Arrangement Schemes freeze interest, fees and charges from the date you apply for your DPP.
As long as you fully complete the DPP then these interest and charges cannot be added back by your creditors.
For individuals, Debt Arrangement Schemes can last for a ‘reasonable’ length of time. For businesses, they last for 5 years maximum.
A Debt Arrangement Scheme can include most unsecured debts, including:
✓ Credit Cards ✓ Store Cards ✓ Personal Loans ✓ Overdrafts ✓ Payday Loans ✓ Council Tax Arrears ✓ Utility Bill Arrears ✓ Shopping Catalogues ✓ Credit Unions ✓ HMRC
The following secured debts but only the arrears – this is optional:
✓ Mortgage Arrears, which are missed mortgage payments ✓ Rent Arrears, which are missed rent payments ✓ Car Finance Arrears, which are missed payments on your car, such as with an HP agreement
The following cannot be included in a DAS ❌ Student Loans ❌ Court Fines ❌ CSA / Child Maintenance Arrears
Length – Trust Deeds last for 4 years. After this time, any remaining debt is paid off. With Debt Arrangement Schemes, they last until all your debt is repaid.
Amount of debt – to qualify for a Trust Deed, you must be in at least £5,000 of debt. For Debt Arrangement Schemes, there is no minimum debt level.
Contact an expert money advisor at Trust Deed Scotland to find out more about the debt solutions available to you. We are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today.
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