Debt Arrangement Scheme (DAS)

The Debt Arrangement Scheme was introduced to provide Scottish residents with a solution to paying back debts without going insolvent. The DAS allows you to repay your debts at a slower, more affordable rate while allowing for reasonable and essential expenses to be maintained, ensuring a comfortable standard of living is reached before any offer of payment is agreed. One of the main benefits to entering a DAS is that any valuable assets you may own, such as home or car, will not be affected in any way.

With the DAS you are paying back the full amount you owe plus a monthly administration fee to the DAS provider who will collect your monthly payment and distribute it to your creditors on a pro rata basis. On entering in to a DAS creditors are obliged to freeze all interest and charges and cease any further collections activities. Your chosen DAS provider will negotiate the repayment of your debt and put forward a statement of affairs and offer of repayment to your creditors, dealing with any contact from them in relation to recovery of your debt with them.

Who may be suitable?

• Lives in Scotland
• Unable to maintain contractual payments to your debts
• Disposable Income – Must enable a repayment of the debt in full including fees in under 120 months
• At least 2 or more unsecured creditors

Risks & considerations:

• Failure to maintain repayments under the terms of your credit agreements or hire agreements may result in the loss of services or assets and may have a severe effect on your future credit rating.
• A Debt Arrangement Scheme will be registered against your credit file for the period of the Arrangement and up to 6 years following completion, and will affect your ability to obtain credit now and in the future.
• Failure to continue to pay taxes, fines, child support payments and other certain debts could result in the loss of access to essential goods or services, or repossession of, or eviction from your home.
• If the arrangement or deed fails there is a risk of sequestration.
• There is expenditure restrictions placed on a person who is entering into a Debt Arrangement Scheme.

Find out more about:

Debt Arrangement Scheme Advantages and Disadvantages