DAS vs Protected Trust Deed
These are Scotland’s two main routes for people with spare income. One repays in full and protects your assets; the other writes off the rest and puts your assets in play.
Applies to: Scotland
What to do now
- Work out your disposable income with the budget calculator.
- Divide your debt by that figure to see roughly how long DAS might take.
- Ask a free approved money adviser to compare both with you.
Side by side
| DAS | Protected Trust Deed | |
|---|---|---|
| Debt written off | No — repaid in full, frozen interest and charges cancelled on completion | Yes — included debt left at the end |
| Length | As long as full repayment takes | Normally a minimum of 48 months |
| Minimum debt | None | £5,000 |
| Home and assets | Not affected | Pass to the trustee; equity may need releasing |
| Windfalls | Changes must be reported; a lump sum can pay the programme off early | Can be claimed by the trustee |
| Your fees | None — borne by creditors | Trustee fees taken from contributions and assets |
| Who sets it up | Approved money adviser, free | Licensed insolvency practitioner |
| Protection | From when creditors are formally asked to agree | Once protected; not if enough creditors object |
| Public record | DAS Register | Register of Insolvencies |
| If it fails | Frozen interest and charges can become payable | Trustee can apply for sequestration |
The real question
The comparison usually turns on arithmetic: could you repay everything at your affordable rate in a reasonable time? If so, DAS repays in full without risk to your assets. If not, a trust deed’s write-off may matter more than its effect on your assets. Citizens Advice Scotland notes that a trust deed is not usually possible where you could repay in full in under four years.
For homeowners
DAS leaves the home outside entirely. A trust deed brings your share of the equity into play: it may be excluded where there is little equity, released by remortgage or third-party payment, or replaced with extra contributions. Trust deeds and your home.
Protection in practice
DAS protection is set by statute once the programme is proposed. A trust deed becomes protected only if, within the five-week period, fewer than a majority in number or a third in value of creditors object. If it does not become protected, creditors who did not agree can still pursue you.
Other options to compare
- Sequestration (bankruptcy in Scotland), including the Minimal Asset Process for low income and few assets.
- An informal DMP, with no legal protection.
- A moratorium from the Accountant in Bankruptcy, which can pause creditor action while you get advice.
IVAs and DROs are not available in Scotland. Debt help in Scotland.
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
Is DAS or a trust deed better?
Neither is better in general. DAS repays in full and protects your assets; a trust deed writes off what remains after about four years but puts assets in play. A free money adviser can compare them using your figures.
Which costs more, DAS or a trust deed?
You pay no fees in DAS, but you repay everything. In a trust deed, fees come from your contributions, but the remaining included debt is written off at the end.
Can I switch from DAS to a trust deed?
A DAS programme is revoked if you get a protected trust deed, so moving is possible, but frozen interest could become payable on revocation. Get advice first.