Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) is a government-backed scheme in Scotland that assists people who are finding it difficult to pay back their debts.

A DAS allows you to make affordable payments through a debt payment programme (DPP), at an affordable level based on your budget and circumstances, until the debts are paid off in full.

How does a DPP / DAS work?

A DPP under this scheme must be set up and managed by an approved debt advisor like PayPlan.

We’ll help you create your budget to see how much you can afford to pay to your debts each month after all your priority payments and living expenses have been covered. 

If a DAS is available to you and you choose to go ahead with us, we’ll create a proposal and send this to your creditors.

If approved, the information in the DPP will clearly state how much you owe in total, the agreed repayment amount for each instalment, the frequency of the proposed payments and the proposed length of your DPP.

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One simple monthly payment

• You’ll make one affordable monthly payment to us, which we’ll distribute to the companies you owe money to on your behalf.

Managed by PayPlan, at no extra cost to you

• We’ll prepare and submit your DDP for your DAS to your creditors for approval.
• If agreed, we’ll manage the distribution of your monthly payments to your creditors based on the terms of your DAS.
• The fees for setting up and managing a DAS, are included in your monthly payments, so you won’t have to pay anything extra.
• We’ll also check in with you every year to make sure your payment is still affordable and that a DAS is still the best option for you.

Frozen interest rates and charges

• Interest rates are frozen while you’re in a DAS, preventing your debts from growing further.

Protection for your assets

• You won’t have to worry about your assets, which will protected throughout your DAS.

Am I eligible for a DPP through a DAS?

A DPP through a DAS may be a suitable option for you if:

• You have a steady income: This could include wages, benefits, or pension payments.
• You owe money to several creditors: If you’re managing multiple debts, a Trust Deed allows you to make one affordable monthly payment instead.
• You can commit to a manageable monthly payment: Your payment will be based on what you can afford, ensuring your essential expenses are covered.

Note: For those living outside Scotland, other options like a Debt Management Plan (DMP) or another solution may be available.

What are the pros and cons of a DAS?

Benefits of a DAS

• One affordable monthly payment – We’ll work out your budget to create a realistic payment plan that fits your financial situation and is sustainable long-term. You only have to make one payment to us rather than individual payments to all the companies you owe, simplifying the process of paying back your debts.
• You only pay what you owe -There are some fees, but the cost is deducted from your payment, so it won’t affect the total amount you owe.
• No interest or extra charges – Interest and charges on debts included in your DAS are frozen, so your repayments remain manageable.
• Legal Protection – Your DAS is protected, which means creditors can’t chase you for payments, add interest or take legal action. If some of your creditors have already started court action against you, joining this scheme will, in most cases, stop this from going any further.
• Possibility of a payment holiday – If your income drops by 50% or more due to reasons like divorce, bereavement, or unemployment, you may be able to apply for a payment holiday of up to six months. This needs to be agreed by your creditors and the Accountant in Bankruptcy (AiB).
• Option for crisis breaks – You can take up to two crisis breaks during a 12-month period without needing approval from your creditors.

Things to consider

• If your circumstances change, you’ll need to let us know. You may be able to apply for a variation or a payment holiday but we’ll need to explore what’s available to you based on your circumstances.
• Your DAS will only be completed once all your debts are paid off.
• Your credit rating will be affected because you’re not maintaining the original repayments. Your details will appear on the DAS Register, which can be accessed online.
• Any markers, notices or defaults applied to your accounts will show for six years.
• Your creditors don’t have to accept your DAS proposal, and if it’s rejected, you’ll need to look into another solution.
• If you don’t follow the conditions of your DPP, your DAS could be cancelled, which means companies can take legal action against you and reapply any interest, fees, and charges to the amounts you owe.

We’re here to help you explore all your options and recommend the best solution for you.

What debts can be included in a DAS?

A DAS covers most priority and non-priority debts, including:

• Bank loans
• Overdrafts
• Credit cards
• Payday loans
• Council tax arrears

Some priority debts can’t be included in a DAS, such as TV licence arrears, court fines and any overpayments that have been fraudulently claimed.

Why Choose Us?

• 100,000+ people received free, confidential debt advice last year

Our dedicated team is here to support you every step of the way, providing expert guidance to help you choose the debt solution that works best for your circumstances.

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FAQs

We’ve put together a list of frequently asked questions about DAS to help answer any questions you might have.