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Debt Arrangement Scheme

What is a Debt Arrangement Scheme?

Personal debt can all to easily get out of hand, a change of circumstances can mean that affordable payments can suddenly become unaffordable.

This could be due to anything from a drop in your earnings, to ill-health or any number of personal problems that can arise and affect your income and your ability to service your debts.  Whatever the cause, personal debt can easily get out of control and lead to real debt problems for people and their families.

If you live in Scotland and are struggling to pay back debts and cope with high interest payments, then a Debt Arrangement Scheme (DAS) might be the way forward for you.

Set up by the Scottish Government, the Debt Arrangement Scheme is a useful alternative to insolvency.  It is an effective way of preventing aggressive court action being taken by creditors, and it allows you to manage your unsecured debts and work your way to a debt-free and much happier future.

Debt Arrangement Scheme is a useful alternative to insolvency

A DAS could be the right option

Who are Debt Arrangement Schemes for?

Debt Arrangement Schemes are intended for people who have and can demonstrate a regular income.

They are suitable for people who can pay back their debts over a longer period, but who are currently struggling with problem debt and high interest payments on their debt – making it harder and harder to keep up their current payments to creditors.

If this is you, then a debt arrangement scheme could be the right option. To qualify for a DAS, you need to:

  • Be living in Scotland
  • Have sought the advice of a DAS-approved Money Advisor
  • Have enough disposable income after paying for your day-to-day living expenses (e.g. mortgage, food, council tax, travel)
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Be free from the worry of debt

How do Debt Arrangement Schemes work?

A Debt Arrangements Scheme (DAS) is essentially an agreed plan to pay back unsecured debt over a given time period through a debt payment programme or a DPP.  Your DAS approved advisor is at the heart of making this work.

At TC Debt Solutions, we are experts in setting up debt arrangement schemes that help people out of current difficulties and allow them to work towards a much brighter financial future for themselves and their families.

Our DAS approved advisers will work with you to establish how to pay back your debts over a period of time.  We will liaise and negotiate with your creditors to agree a DPP that meets their requirements and is sustainable for you, leaving you enough money to meet your financial obligations and enjoy a quality of life that is free from the constant worry of debt.

One of the first things we will do is to establish who is owed what.  It is about having the latest figures on your debts so that your DPP is accurate and contains all of your unsecured debts.

The chance of a much better future

Debt Payment Programme

The plan has to contain all the right information and be a proposal with the best chance of gaining the acceptance of creditors; they will want to know that it is based on accurate data.  Demonstrating affordability is key to putting together a successful DPP. Creditors need to be assured that the money they are owed will be recovered under the terms of the DAS.

We will work with you to ensure that any amounts we put forward as part of the debt payment plan leave you enough money to meet your living expenses and provide you with sufficient disposable income.

Creditors have 21 days, from the application being submitted for a debt payment plan, to raise any objections; if they do not respond within the period, then they are deemed to have consented.  If one or more of them objects, then the matter is referred to the DAS Administrator, if they judge the application to be ‘fair and reasonable’, then they have the power to force creditors to consent to an application.

Once the debt payment plan is agreed, the DAS will require you to make a payment each month to the payment distributor who then pays all your creditors.  This can be done through a direct debit, standing order or by card payment.

As long as you continue to make the agreed payment, your creditors cannot add any charges, interest or fees.  When you come to the end of the DAS and have paid back all the money you owe, you are automatically freed from the terms of your DAS and the scheme is officially wound up – leaving you debt-free to get on with life and the hope of a better future.

Regain control of your personal finances

What is good about a Debt Arrangement Scheme?

The best thing about a Debt Arrangement Scheme is that it is a positive way of dealing with your debts while protecting yourself and your family.  A Debt Arrangement Scheme allows you to regain control of your personal finances and gives you peace of mind knowing that no further action can be taken against you.

A Debt Arrangement Scheme provides legal protection that is based on government legislation.  It acts as a major safeguard for your assets in that you are allowed to pay back your debts without having to realise the value of your assets.

By way of contrast, entering into a trust deed or sequestration, which are forms of insolvency, can often involve looking at other ways of paying back creditors.  This can include items such as your car, if the value of that is over £3,000.

More importantly, your creditors might require you to sell your house or any property that you own under a trust deed or sequestration; under a DAS, they are not able to do this.

How long does a DAS stay on your credit file

We will guide you through everything

How long does a DAS stay on your credit file?

The length of time that it may be visible on your credit file depends on how long the plan lasts before it is paid off.  The length of a DPP is agreed on an individual basis to reflect your circumstances, and is usually less than 10 years.

Your credit file contains at least 6 years of history, so a DAS could affect your credit rating for at least 6 years or until payments under the DPP fall off your record.  It is important to be clear about this if you are going to be looking for credit at some stage in the foreseeable future.

Family circumstances and stage of life will have a big effect on your decision, and again, we can provide advice to ensure you make the most suitable choice, based on your circumstances.


Creating breathing space

In times of distress, a moratorium provides some breathing space to stop creditors taking further action against you for debt you are owe them, giving you time to think, take advice and decide on the best course of action.

If you are having difficulty repaying one of more of your creditors and require more time to consider your options, you can apply for a moratorium on creditor diligence.

It is used alongside the statutory Scottish debt solutions and may be available if you are considering applying for Sequestration, a Trust deed or for the Debt Arrangement Scheme.

A moratorium effectively stops creditor action against you for six months, offering valuable time to seek advice and think about your options. You are allowed to apply for one six-month moratorium in any twelve-month period.

A DAS Has More Advantages

Debt Arrangement Scheme Pros & Cons


In terms of pros, a DAS offers you the following advantages:

  • You get to regain control over your debts and personal finances
  • All of your debts are consolidated in one debt payment programme
  • Your payments are affordable and interest-free
  • You get more time to pay off your debts
  • Your payments go towards reducing your debt, rather than any interest
  • You are completely protected from court action (as long as you adhere to the terms of your DAS and the repayments schedule)
  • All interest and other charges relating to your previous debts are automatically frozen as long as the debts are included in your DAS
  • If your circumstances change, it may be possible to, vary the monthly payment, apply for a short term crisis break and/or apply for a payment holiday of up to 6 months.
  • Your home and any equity that you have in it are safe as long as you continue to make your mortgage payments; if you rent your home then that is safeguarded too as long as you make your rental payments


On the ‘downside’, the cons can be summarised as:

  • A Debt Arrangement Scheme does not reduce the money owed. You will repay the full debt owed but the interest and charges are frozen
  • A Debt Arrangement Scheme is available only to those people who live in Scotland
  • Your credit score will be negatively affected

Free & Confidential Consultation


To chat through your circumstances and to find out more about how a Debt Arrangement Scheme (DAS) will help you and your family, complete our short form and we will contact you.

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