Debt Arrangement Scheme (DAS)
Repay your debts at a rate that suits you
- Stop creditors harassing you for payment
- Freeze all interest, penalties and fees on your debts
- Contact our expert team today for free debt advice
The Debt Arrangement Scheme (DAS) is a Government-run initiative that allows individuals to stop creditor hassle, freeze interest and pay off their debts at a rate that suits them.
Since its introduction in 2004, DAS has helped over 6,000 people take control of their finances and get their lives back on track. To see if DAS is right for you, keep reading or call our team for free initial advice.
While DAS is very helpful for people struggling with debt, it’s not available to everyone. To qualify for a DAS, you must:
If you are struggling with debts and don’t meet all the eligibility criteria, we still recommend you contact our team. There are a number of other options available to help you and can advise on which is best for your circumstances.
If you think DAS is right for you, your money adviser will guide you through the process, explaining each step as you go. If you are interested in the actual process, here is an overview of each step.
We’ll help you collect all the documentation you need to create a DAS proposal. This includes things like wages slips, creditor statements, mortgage contracts, finance agreements and utility bills. These documents are used to verify your financial circumstances.
Next, we calculate your disposable income by subtracting your total expenditure from your monthly income. Then we use that figure to set the length of your debt payment programme (DPP). Your DPP will run until all your debts are paid.
Once your DPP is set, we’ll submit your DAS proposals to your creditors, after which they have 21 days to object.
Usually, creditors won’t object as the proposals show you aren’t able to pay any more than proposed.
Even if your creditors object, the DAS Administrator has the final word. The DAS Administrator will approve a DAS where they decide it is “fair and reasonable.”
After your DAS is approved, you make a payment every month until your original debt has been repaid. The average DAS runs for 6.5 years.
Like all debt management schemes, DAS is fairly complicated and has a number of advantages and disadvantages. In the sections below, we have summarised some of the key points for you.
We founded this company 5 years ago with the goal of supporting local people through financial difficulties. Since then, we’ve helped hundreds of people take control of their finances and get their lives back on track.
We are tremendously proud of what we have achieved over the years and believe that’s reflected in our ICAS and FCA authorisation.
If you are unsure about what’s right for you, call our team or visit our office in Glasgow for free, confidential and no-obligation initial advice. The most important thing to us is that you make an informed choice and take control of your finances.
In our experience, people have a lot of questions when they are struggling with debts. In this section, we’ve tried to answer some of the most common questions related to debt arrangement schemes and debt management in general. If we didn’t answer your question, please get in touch with out team today and we’ll do our best to help.
You must include all of your debts in your DAS documentation. However, only some are included in the total you are repaying. You are not able to include hire purchase or conditional sale arrears, child support arrears and student loans.
Only an approved money adviser can arrange a DAS. Approved money advisers are carefully selected by the Scottish Government.
Your creditors have 21 days to object to your DAS after they receive your proposals. Objections are quite common as creditors often believe they can get you to pay faster without it. Even if your creditors object to your DAS proposals, the DAS Administrator can overrule their decision.
The DAS Administrator will often reject or amend a DAS if they feel it does not meet their “fair and reasonable” tests. If you believe the rejection or amendments are unfair, you can appeal the decision to the sheriff court.
It is highly unlikely that you will have to sell your home. However, your money adviser may ask you to remortgage your property if you have a lot of equity in it.
If you have a DAS arranged, you will still have access to credit. However, your credit will usually be capped at a pre-agreed level.
At the end of your DAS, if you have made all your payments successfully, all your debts are repaid and you are back to being debt-free. Your creditors cannot hold you liable for any additional payments for interest, fees or penalties.
If you miss payments or make part payments, the DAS Administrator may revoke your DAS.
To be eligible for DAS you must be: resident in Scotland; have one or more debts that you’re struggling to repay; not in a trust deed, bankrupt or subject to a bankruptcy order; and have a reasonable level of surplus income.
If a debt is not included in your DAS, you must continue to pay it normally. This includes things like ongoing mortgage or rent payments, council tax, utility bills and subscriptions.
The Fair and Reasonable Test is fairly complicated and considers things like: the total amount of debt; the length of the proposed payment plan; the approval of creditors; comments made by the money adviser; and more. For an in-depth look, see the AiB’s guide here.
Because DAS is a government-run scheme, it is administered by a civil servant from the AiB.
Yes, from the moment your DAS is agreed, your creditors must stop charging interest, fees and penalties on your debts.
Your DAS will last for however long it takes to repay your debts. Commonly this is around 6.5 years.
There is no reason why you have to disclose your DAS to your employer but they may discover it anyhow as all approved DAS are recorded on a publically accessible register.
Yes, sole traders can access a regular DAS. If you are in a partnership, trust or unincorporated business, you will need to use a Business DAS.