Debt Arrangement Scheme

Who the scheme is designed for

The individual must live in Scotland, have disposable income after essential costs and be able to repay the debts within a reasonable period. An approved money adviser assesses the finances and the applicable conditions. An existing insolvency process can prevent entry.

There is no universal programme length. What is reasonable depends on the debt, affordable contribution and circumstances. A joint programme is possible for qualifying partners, but each person must satisfy the conditions. A plan based on an unrealistic budget is not a durable solution.

The debt payment programme

The approved adviser prepares the programme and creditors are asked to respond. Accountant in Bankruptcy administers the statutory approval framework, including cases requiring an assessment of fairness and reasonableness. A payment distributor handles payments under the approved programme.

The programme provides a structured way to repay the included debt. It should not be confused with a commercial debt management plan, whose protections depend on voluntary creditor agreement. The treatment of each liability and current priority commitment still needs checking.

Protection and interest

DAS restricts creditor enforcement and provides for interest and charges to be frozen under its rules. Successful completion is important to the final treatment of those charges. A programme that is revoked can have different consequences, so a freeze should not be described as an unconditional immediate write-off.

The adviser can explain when the relevant protections start, how creditors are notified and how the public DAS register records the programme. Protection is not permission to disregard new liabilities or miss essential household payments.

Changes, completion and failure

Income and household circumstances can change over a long repayment period. The scheme has routes for reviewing or varying a programme where the conditions are met. Report difficulty early so the adviser can consider the available options.

On successful completion, the programme ends in accordance with its terms and the scheme’s rules. Revocation can allow creditors to resume recovery and may restore interest or charges. A DAS entry and the effect on a credit record are separate from the fact that it is not bankruptcy.

The process, at a glance

1. Approved adviser assessment. Establish disposable income and whether repayment within a reasonable period is achievable.Process stage — practical timing varies
2. Prepare the DPP. Set out debts, contributions and the proposed programme.Process stage — practical timing varies
3. Creditor response and approval. The relevant rules determine approval, protections and any fairness assessment.Process stage — practical timing varies
4. Make programme payments. A distributor pays creditors while the adviser supports reviews and changes.Process stage — practical timing varies
5. Completion or revocation. Successful completion and revocation have different debt and interest consequences.Process stage — practical timing varies