How the Debt Arrangement Scheme works
DAS lets you repay what you owe at an affordable rate, with interest and charges frozen by law. Here is the process from first contact to completion.
Applies to: Scotland
What to do now
- Find a free, DAS-approved money adviser through debt help in Scotland.
- Prepare your budget with the budget calculator.
- Gather payslips, bills and creditor letters.
The steps
- Find an approved money adviser. You can only apply through one, and not every adviser is approved, so ask.
- Budget. The adviser uses the Common Financial Tool to work out your disposable income after essentials such as rent or mortgage, food and utilities.
- Proposal. The adviser proposes a debt payment programme: how much, how often and for how long.
- Protection begins. Protection starts when the adviser or the Accountant in Bankruptcy formally asks creditors to agree.
- Approval. Creditors respond; where they object, the Accountant in Bankruptcy can decide whether the programme is fair and reasonable.
- Payments. You pay the payments distributor by direct debit, standing order or from your wages. You cannot pay creditors directly.
Who can apply
- You live in Scotland.
- You owe money to one or more creditors — there is no minimum.
- You have disposable income and can repay in a reasonable time.
- You are not bankrupt, in a protected trust deed or subject to a Bankruptcy Restrictions Order.
You can apply alone or jointly with a partner who also has debts.
The interest freeze
Interest, fees and charges that would fall due after approval are not payable unless the programme is revoked, and they cease to be owed when it is completed. That is set in law, not left to each creditor.
Fees
You do not pay fees. They are borne by creditors: a 2% application fee to the DAS Administrator and an administration fee deducted by the payments distributor before money is passed on.
Conditions
- Keep up the payments and your ongoing rent or mortgage.
- Get approval before applying for credit over £2,000.
- Report changes in circumstances within one week.
If things change
A one-month crisis payment break can be approved by your adviser, and a break of up to six months can be applied for if your disposable income falls by 50% or more. Breaks extend the programme. Payments can also be changed by variation. AiB can revoke a programme if you miss three payments without an approved break.
Credit file and register
Applications appear on the public DAS Register. StepChange says a DPP shows on your credit file for six years from the date it starts.
This page explains how the solution works. It is not a recommendation, and it cannot tell you whether it suits you — a free, regulated debt adviser can look at your full situation.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Who can set up a DAS?
Only a DAS-approved money adviser. Free money advice services across Scotland can do this at no cost to you.
Does DAS freeze interest?
Yes. Interest, fees and charges are frozen by law once the programme is approved, and cease to be owed when it is completed.
Do I pay fees for DAS?
No. The fees are borne by creditors and deducted before payments are passed on to them.