Debt Arrangement Scheme (DAS) Explained — Scotland 2026

What the Debt Arrangement Scheme actually does

If someone living in Scotland is struggling to keep up with multiple debts, the Debt Arrangement Scheme (DAS) is the statutory route that lets them repay what they owe over an extended period while interest, fees and charges are frozen by law. It is run by the Accountant in Bankruptcy (AiB), the Scottish Government agency responsible for personal insolvency in Scotland.

DAS is not bankruptcy and it is not an IVA. Under DAS, the full debt is repaid through a Debt Payment Programme (DPP) — but the freeze on interest and charges means that, once the programme is completed, the debtor walks away owing nothing further. According to GOV.UK and the AiB, DAS was introduced under the Debt Arrangement and Attachment (Scotland) Act 2002 and has operated since 2004.

How a Debt Payment Programme works

A Debt Payment Programme is the formal arrangement at the heart of DAS. The debtor makes one regular payment — weekly, fortnightly or monthly — to a single DAS-approved payments distributor, which then divides the money between creditors in proportion to what is owed.

Key features of a DPP, as set out by the AiB:

• Interest, fees and charges are frozen from the date the DPP is approved, and written off if the programme completes successfully.
• Creditors cannot take further enforcement action — including diligence such as earnings arrestment or bank arrestment — once the DPP is in place.
• There is no minimum or maximum debt level to apply.
• The repayment period is based on what the debtor can genuinely afford after reasonable living costs.
• Most DPPs run for between 5 and 10 years, although shorter and longer programmes are possible.

The DPP is a public arrangement and is recorded on the DAS Register, which is searchable online. This is similar to how IVAs appear on the Individual Insolvency Register in England and Wales.

Who can apply for DAS

To be eligible for a Debt Payment Programme, an applicant must:

• Live in Scotland
• Have at least one debt
• Have a regular source of income (employment, self-employment, pension or certain benefits)
• Be able to afford a reasonable contribution to their debts after essential living costs

The scheme is designed for people who can repay their debts in full given time and a freeze on interest — not for those whose situation is so severe that repayment is impossible. For someone in that position, the formal Scottish alternatives are Minimal Asset Process (MAP) bankruptcy or full sequestration, both also administered by the AiB.

Joint applications

Couples or two people who share liability for the same debts can apply jointly for a DPP. Joint applicants do not have to be married or in a civil partnership — they simply need to share at least one debt.

How to apply: the role of a money adviser

A DAS application cannot be made directly by the individual. It must be submitted by an approved DAS money adviser. These advisers are typically based at:

• Local authority money advice services
• Citizens Advice Scotland bureaux
• Independent advice agencies
• Some FCA-regulated commercial firms approved to act as DAS money advisers

The money adviser carries out a full income and expenditure assessment, agrees a sustainable monthly payment, contacts creditors and submits the application to the AiB. Once the application is lodged, a six-week moratorium typically begins, during which creditors cannot start or continue enforcement action.

What debts can — and cannot — be included

Most common consumer debts can be included in a Debt Payment Programme:

• Credit cards and store cards
• Personal loans
• Overdrafts
• Catalogue and mail-order debts
• Council tax arrears
• HMRC tax debts
• Utility arrears
• Some benefit overpayments

Certain debts are excluded by statute or by their nature, including:

• Current child support / Child Maintenance Service payments (arrears may sometimes be included)
• Student loans
• Court fines
• Secured debts such as mortgages (although mortgage arrears can sometimes be included)

An approved money adviser will identify which debts can be brought into the programme and how secured liabilities should be treated alongside it.

Fees and costs under DAS

DAS is not a free product, but the costs are deducted from the debtor's single monthly payment rather than charged on top. The AiB sets the fee structure, and the standard breakdown is:

• 22% of each payment goes towards scheme fees, made up of a payments distributor fee and a money adviser fee.
• 78% of each payment goes to creditors.

Because interest and charges are frozen, the total amount repaid under a completed DPP is still only the original debt balance — the creditor effectively absorbs the cost of the freeze in exchange for guaranteed regular payments.

What happens if circumstances change

A Debt Payment Programme is intended to be flexible. If a debtor's circumstances change, the AiB can approve a variation — for example, reducing payments after a drop in income, taking a payment break of up to six months in any 12-month period, or adding a new debt that arose after the DPP began.

If the debtor falls more than two months behind on payments without agreeing a variation, the DPP can be revoked. Revocation removes the protection from creditors and reinstates interest and charges from the date of revocation, so engaging early with the money adviser is important if anything changes.

DAS compared with other UK debt options

For people researching debt options across the UK, it helps to see how DAS sits alongside the equivalents in other jurisdictions:

• DMP (England, Wales, NI): Informal, not statutory, no legal freeze on interest — creditors choose whether to freeze charges.
• IVA (England, Wales, NI): Statutory, binding on creditors, usually involves writing off a proportion of debt.
• DRO (England, Wales): For low-income, low-asset debtors with debts up to £50,000 (since June 2024).
• Trust Deed (Scotland): Scottish equivalent of an IVA, also administered under AiB rules.
• Sequestration / MAP bankruptcy (Scotland): Full Scottish insolvency procedures.

The defining feature of DAS, compared with the others, is that it combines a statutory interest freeze with full repayment of the principal debt — without the formal insolvency status of bankruptcy, an IVA or a Trust Deed.

Impact on credit file and employment

A DPP is recorded on the DAS Register for the duration of the programme and appears on the debtor's credit file. Credit reference agencies typically retain the record for six years from the date the DPP starts, in line with general UK practice. During the DPP, obtaining new credit will usually be difficult.

Unlike sequestration, a DPP does not normally affect most types of employment, although certain regulated roles (for example in financial services) may require disclosure. Checking any specific employment contract or professional body rule is sensible before applying.

Where to get further information

The official source of information on the Debt Arrangement Scheme is the Accountant in Bankruptcy, with supporting guidance published on GOV.UK. The legislation itself is the Debt Arrangement and Attachment (Scotland) Act 2002 and the Debt Arrangement Scheme (Scotland) Regulations 2011 (as amended).