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DAS (Debt Arrangement Scheme)

Alongside trust deeds and sequestration, a debt arrangement scheme is one of the main debt solutions for people in Scotland. Here’s all you need to know about debt arrangement schemes.

What is a DAS?

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.

How does a DAS work?

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 debt arrangement scheme, 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.

Who qualifies for a DAS?

To qualify for a debt arrangement scheme you must:

  • Have at least one debt.
  • Have spoken to a debt advisor, such as Trust Deed Scotland.
  • Be resident in Scotland.
  • Be able to repay your debt(s) after you’ve paid your living expenses.
  • Not be in another form of debt repayment, such as a trust deed.

Advantages of a DAS

  • Payments based on what you can afford
  • Protected from legal action from creditors.
  • Your home will not be affected as long as you maintain your mortgage obligations.
  • Interest and charges frozen once a debt arrangement scheme is in place.
  • Apply for a six-month payment holiday should you find it difficult to repay.

Disadvantages of a DAS

  • Unlike trust deeds, a debt arrangement scheme lasts until the debt is cleared.
  • Your credit rating could be affected.
  • You might have to pay an initial cost and admin fees to take out a debt arrangement scheme.

Frequently Asked Questions

Got a question? Maybe we have an answer for you here . . .

For individuals, debt arrangement schemes can last for a ‘reasonable’ length of time. For businesses, they last for 5 years maximum.

Debt arrangement schemes include unsecured debts like: Credit cards, Bank loans and overdrafts, Council tax arrears, Utility bill arrears.

Debt arrangement schemes do not include secured debt like mortgage debt.

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.

Find out more

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.

Trust Deed Scotland 0141 221 0999

Further Information

We provide a wide and varied advice to our clients. Below is some related categories.


Trust Deed Scotland

How a Trust Deed affects your Credit Rating

Our Debt Guide

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