Notes for Guidance - Money adviser - Debt Arrangement Scheme

The Debt Arrangement Scheme, also known as DAS, is a government-run debt management tool which allows clients to repay their debts through a debt payment programme (DPP).

It allows clients to pay debts over an extended period and offers protection from enforcement action by creditors in respect of debts which are being paid through it. A DPP can last for any reasonable length of time, can include one or more debts, and can be in the single name or, in certain circumstances, in joint names.

DAS is different from bankruptcy and protected trust deeds. Bankruptcy and protected trust deeds are debt relief measures and on average, only a small proportion of the debt is repaid to unsecured creditors through these.

In DAS, the client pays 100% of their debts in the DPP. Creditors are repaid 78%, with the remaining 22% of the payments made used to cover the costs associated with the case. 

DAS only applies to individuals who are habitually resident in Scotland.

Creditors can be based in Scotland, elsewhere in the UK or abroad, but they must still comply with the DAS legislation if the client’s DPP is approved. For example, the creditor must not try to persuade the client to withdraw from the DPP, or to make additional payments in respect of a debt included in the programme.

When a client makes an application for a DPP,  all interest, fees, penalties, and other charges on debts included in the programme are frozen from the date of application. If the DPP application is approved all interest, fees and charges will be written off when the programme is completed.

If the DPP application is rejected, or the programme is approved but not completed, all interest, fees and charges can be added back on, and creditors will be able to take enforcement action. 

All debts due must be included in a DPP except:

• rent or mortgage arrears (if the client chooses to not to include them)
• debts defined as a continuing liability

This guidance does not itself have the force of law. Interpretation of the law is a matter for the courts, rather than the Scottish Government.