What Is the Debt Arrangement Scheme (DAS)?
If you live in Scotland and are struggling to keep up with multiple debts, the Debt Arrangement Scheme (DAS) is a Scottish Government programme that allows you to repay everything you owe through a single, structured Debt Payment Programme (DPP). While you are in an approved DPP, interest, fees, and charges on your included debts are frozen — meaning the total amount owed does not grow while you repay it.
DAS is distinct from debt solutions available in England, Wales, and Northern Ireland. It is administered by the Accountant in Bankruptcy (AiB), Scotland's insolvency service, and is governed by the Debt Arrangement Scheme (Scotland) Regulations. It is not a form of insolvency — your assets are not at risk in the way they might be under bankruptcy or a Trust Deed, and completing a DPP means the debt is fully repaid rather than written off.
How DAS Works in Practice
Under DAS, an approved money adviser helps work out a single monthly payment that reflects what can reasonably be afforded after essential living costs. That payment is then distributed among creditors on the applicant's behalf by an approved payment distributor. Creditors do not deal directly with the person in the scheme during this period.
Once a DPP is approved, creditors are legally required to freeze interest and charges on the debts included. They are also prevented from taking enforcement action — such as using sheriff officers (Scotland's equivalent of bailiffs) — while the programme is active and being adhered to. According to the Accountant in Bankruptcy, this protection is one of the key features distinguishing DAS from informal repayment arrangements.
What Happens at the End of a DPP?
When all payments have been made and the programme is successfully completed, the debts included in the DPP are treated as fully repaid. Any interest or charges that were frozen during the programme are written off at that point — meaning the person repays the original debt balance but not the interest that accrued during the DPP period. This can represent a significant saving over the full term of the programme.
If someone is unable to continue making payments during a DPP — for example, because of a significant change in circumstances — there is a process for applying to vary the programme. In some cases, a payment holiday may be granted. If a DPP is ultimately revoked, creditors regain the right to pursue the debt, and interest may be reinstated, so it is important to contact an approved money adviser as soon as difficulties arise.
Dealing with debt in Scotland?
We refer you to FCA-regulated debt advice specialists who can review your situation and explain your options under Scottish law — no obligation.
DAS Eligibility: Who Can Apply?
DAS is available to individuals resident in Scotland. The scheme also has provisions for businesses, partnerships, and trusts, though the individual route is the most commonly used. To apply for a DPP as an individual, several criteria must generally be met:
- The total debt must be at least £5,000
- The applicant must be able to demonstrate a realistic ability to repay the debts within the DPP — there is no fixed maximum repayment period, but the programme must be credible
- There is no upper debt limit for individual DAS applications under the current regulations
- Certain debts can be excluded from a DPP, such as ongoing mortgage payments or secured loans — these continue to be paid separately
- Applicants must work with an approved money adviser to submit their application; DAS cannot be applied for directly without one
Approved money advisers include staff at local authorities, Citizens Advice bureaux in Scotland, and some other approved organisations. The Accountant in Bankruptcy maintains a register of approved money advisers on its website.
DAS vs Other Scottish Debt Solutions
Scotland has its own distinct set of formal debt solutions, separate from those in England and Wales. Understanding how DAS compares to the alternatives helps clarify which situations it may be appropriate for — though any decision about which route to pursue should be made with the support of a regulated money adviser.
DAS vs Protected Trust Deed
A Protected Trust Deed is a form of insolvency in Scotland, typically lasting four years, in which a trustee takes control of assets and distributes them among creditors. At the end of the term, any remaining unsecured debt is written off. A Trust Deed involves a degree of write-off that DAS does not — DAS requires full repayment of the debt principal. However, DAS does not appear on the insolvency register in the same way a Trust Deed does, and it does not involve an insolvency practitioner taking control of assets.
DAS vs Sequestration (Scottish Bankruptcy)
Sequestration is the Scottish term for bankruptcy. It can result in assets — including, in some cases, equity in property — being realised to pay creditors. Remaining eligible debts are discharged after a period, typically one year. Sequestration has significant consequences for credit history and, in some cases, employment. DAS, by contrast, does not involve insolvency and allows debts to be repaid in full over a longer period without the same consequences.
DAS vs Informal Repayment Arrangements
It is possible to negotiate directly with creditors to repay debts over time without any formal scheme. However, informal arrangements do not carry the legal protections of DAS — creditors are not legally required to freeze interest or halt enforcement under an informal plan. For this reason, DAS may offer greater stability for people who need to manage multiple creditors simultaneously.
Dealing with debt in Scotland?
We refer you to FCA-regulated debt advice specialists who can review your situation and explain your options under Scottish law — no obligation.
How Creditors Respond to a DAS Application
When a DPP application is submitted, creditors are notified and have the opportunity to object. However, the rules governing DAS include provisions under which the Accountant in Bankruptcy can approve a DPP even if some creditors object — provided certain conditions are met, including that the majority of the debt by value is represented by creditors who consent or are deemed to consent.
According to the Accountant in Bankruptcy's guidance, if a creditor does not respond within the set period after being notified of a DPP application, they are treated as having consented to the programme. This mechanism means a DPP can proceed even without unanimous creditor agreement, which distinguishes it from a purely voluntary arrangement.
Effect on Credit File and Everyday Life
Entering a DPP will typically be recorded on a credit file. The DAS Register — a public register maintained by the Accountant in Bankruptcy — records all active and completed programmes. Lenders may check this register and a credit file when assessing applications for credit during or after a DPP. In practice, access to new credit is likely to be restricted for the duration of the programme and for some time afterwards.
Unlike sequestration or a Trust Deed, DAS does not impose restrictions on holding certain professional roles or directorships in the same way. However, anyone in a licensed or regulated profession should check their specific obligations with the relevant regulatory body before entering any formal debt arrangement.
Day-to-day, the main change is that a single monthly payment is made rather than managing multiple creditor payments separately. The approved payment distributor handles the onward distribution to each creditor, removing the administrative burden and the risk of missing individual payments.
How to Access DAS — The Application Process
The process for accessing DAS begins with contacting an approved money adviser. This is a legal requirement — applications cannot be made directly to the Accountant in Bankruptcy without one. Approved money advisers are typically available through:
- Local authority money advice services (offered by most Scottish councils)
- Citizens Advice Scotland bureaux
- Some registered charities and advice agencies approved by the AiB
The money adviser will carry out a financial assessment, review income and expenditure, identify which debts can be included, and calculate a proposed monthly payment. They will then submit the DPP application on the applicant's behalf. Once submitted, creditors are notified and the statutory process begins.
Free debt advice is available from MoneyHelper (moneyhelper.org.uk), StepChange Debt Charity, Citizens Advice, and National Debtline — all of which can provide information on DAS and connect people in Scotland with an approved money adviser if appropriate. These organisations offer independent, impartial advice at no cost.
DAS and the Rest of the UK
It is important to note that DAS is a Scotland-only scheme. People living in England, Wales, or Northern Ireland cannot access DAS. The closest equivalent in England and Wales is a Debt Management Plan (DMP), which is an informal arrangement with creditors managed through a debt advice provider — but DMPs do not carry the same statutory protections as a DAS Debt Payment Programme. England and Wales also have their own formal insolvency routes, including Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs), none of which are available in Scotland.
For people in Scotland who are unsure whether DAS, a Trust Deed, sequestration, or an informal arrangement is most relevant to their circumstances, speaking to a regulated money adviser is the appropriate first step. UK Debt Team is not a debt advice provider and does not assess individual cases — the information on this page describes how DAS works as a matter of Scottish law and regulation.