Debt Arrangement Scheme

Debt Arrangement Scheme

Debt Arrangement Scheme

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What Is A Debt Arrangement Scheme?

First introduced in Scotland in 2004, a DAS is a legally binding debt solution available to residents of Scotland. It is an alternative to a Trust Deed or Sequestration.

A DAS allows you to freeze the interest and any charges on your debt and repay it over an extended period of time. It is controlled by a DAS administrator who will decide the duration of the arrangement. This will be based on factors like, how much you owe and how much you can afford to pay back each month.

How Does a Debt Arrangement Scheme Work?

Entering into a DAS binds you to an agreement where you will make one monthly payment that will be divided between your creditors. This allows your creditors to receive a regular payment towards your arrears.

The DAS should be administered by an approved money advisor, who will represent you when dealing with your lenders. This means you will no longer have to deal with them yourself.

You can employ an advisor through The Citizens Advice Bureau or your local authority. You can also use an Insolvency Practitioner to act as your money advisor.

There are no fees required to set up a DAS and there is no fixed length for the agreement. However the average length of time that a DAS usually takes to complete is approximately six and a half years.

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Do I Qualify for a Debt Arrangement Scheme?

In order to qualify for a Debt Arrangement Scheme, you must meet the following conditions:


  • Be a resident of Scotland

  • Have one or more debts

  • You must be able to afford to make reasonable monthly payments

  • Must not be subject to a Trust Deed or Sequestration.

What Process Will I Need to Follow for a Debt Arrangement Scheme?

A DAS should take around 6-8 weeks to complete depending on how quickly you respond to any queries you may have. Once you have appointed a money advisor the following steps will be taken:


  • A proposal is sent to each of your creditors, giving them 21 days to object

  • The Debt Payment Programme will be automatically approved if there are no objections

  • If there are any objections made by the creditors, then the advisor will decide if they are fair or whether the objection can be overruled.

  • If the advisor decides that any of the objections are valid, then you may be requested to create a new Debt Payment Programme that addresses their concerns.

  • Once the advisor is happy that the proposal is fair, it will be approved. At this point there is nothing the creditors can do to stop the approval.

  • If the revised proposal is rejected and no agreement can be found, then there is an appeals process that you can use. If this fails, then you may be left with only a Trust Deed or Bankruptcy to fall back on.

  • If your financial situation changes while you are paying you DAS, you can have the terms of the agreement changed without charge. This can be to both increase or decrease your payments, depending on your circumstances.

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Which Creditors Can Be Included in a Debt Arrangement Scheme?

A Debt Arrangement Scheme can include any unsecured debt, including the following:



Debt secured against your assets cannot be included in your DAS, for example:


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What Are the Advantages of a Debt Arrangement Scheme?

  • You will only make one single payment per month towards your debt

  • An advisor will be able to help you with the process and they will arrange all the payments to your creditors

  • Once the DAS has begun, your creditors will no longer be able to pursue your debt or take legal action against you

  • All charges and interest will be frozen on your debt once the DAS has been approved

  • The DAS is adaptable, so it can be changed to match your circumstances

  • Any wage arrestments that are in place will be stopped

  • None of your possessions or assets can be seized, including your home

  • Any creditors who reject the proposal will have to comply with the agreement in it is consider ‘fair’ by the administrator 

What Are the Disadvantages of a Debt Arrangement Scheme?

  • Your credit rating will be negatively affected
  • If you miss payments or fail to comply with the DAS then it can be revoked. This will enable your creditors to resume action against you.

  • A DAS doesn’t write off any of your debt

  • A DAS can take longer than other debt solutions

Who Can Help Me If I'm Struggling With My Debt Repayments?

If you are struggling with your debt and would like to find out the best solution to fit your needs, then contact IVA4Me.

Debt Arrangement Scheme FAQs

Debt Arrangement Scheme FAQs

Who Can Apply for a DAS?

A DAS (Debt Arrangement Scheme) is a government sanctioned debt solution, that is designed to allow you to pay off you debt over a longer period of time than stated in the original credit agreement. This means that your monthly payments reduce to a more affordable level. So who is eligible? For starters, a DAS

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Debt Arrangement Scheme
Debt Arrangement Scheme FAQs

How Long Does a DAS Stay on Your Credit File?

Sadly, there is no getting around the fact that pretty much any debt solution that you enter into will change your credit score for the worse. However, if you have already been missing repayments, then your credit score will already be negatively affected. Entering into a debt solution should be seen as making a fresh

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Debt Arrangement Scheme
Debt Arrangement Scheme FAQs

Is a Debt Arrangement Scheme an Insolvency?

A DAS is not an insolvency.  Available only in Scotland, a DAS is a statutory Debt Management Plan. A DAS should be thought as a consolidation of debt that is then payable over an extended period of time.  Ultimately you will pay off your debt and it will not be written off. All fees, interest and charges are frozen on your

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