Struggling with debt in Scotland? Here's how DAS works
If debts have become unmanageable and you live in Scotland, there is a formal statutory route that allows repayment over a realistic timescale — without the threat of legal action from creditors hanging over you. The Debt Arrangement Scheme (DAS) is a Scottish Government programme that lets people repay their debts in full, but at a pace they can actually afford, with interest and charges legally frozen from the point of approval.
DAS is not available in England, Wales, or Northern Ireland — those regions have different formal debt solutions such as Debt Relief Orders, Individual Voluntary Arrangements, and Debt Management Plans. For people in Scotland, DAS sits alongside the Protected Trust Deed and Sequestration (the Scottish equivalent of bankruptcy) as one of three main formal routes.
Understanding how DAS operates, what it protects against, and who can apply is essential before anyone considers whether to pursue it or another path.
What Is a Debt Payment Programme?
Under DAS, someone who owes money applies to set up a Debt Payment Programme (DPP). This is an approved plan, administered through a money adviser, that sets out how much will be paid each month and over what period. The payments are distributed to creditors by an approved payments distributor — the individual does not pay each creditor separately.
Once a DPP is approved, creditors are legally prevented from taking any action to recover the money owed. That means no sheriff court action, no diligence (the Scottish term for enforcement), and no contact from debt collectors pursuing the debt. This legal protection is one of the most significant features of DAS and distinguishes it from informal arrangements, which creditors can withdraw from at any time.
Who administers DAS?
DAS is administered by the Accountant in Bankruptcy (AiB), an agency of the Scottish Government. Applications are not made directly by the debtor — they must be submitted through an approved money adviser, which can be a local authority money adviser, a Citizens Advice Bureau, or certain regulated private sector advisers.
The money adviser assesses the applicant's income, essential expenditure, and total debts, then proposes a monthly payment figure and a repayment period. There is no fixed maximum term for a DPP, though in practice longer programmes face more scrutiny from the AiB before approval.
Questions about DAS or debt in Scotland?
We refer you to FCA-regulated debt advice specialists who can review your situation properly — no obligation, no judgement.
Who Is Eligible for the Debt Arrangement Scheme?
To be eligible, the applicant must:
- Be resident in Scotland (DAS has no equivalent in England, Wales, or Northern Ireland)
- Have at least one debt included in the programme
- Be able to demonstrate a reasonable surplus income after essential living costs — enough to make meaningful monthly payments
- Not currently be subject to sequestration (Scottish bankruptcy) proceedings
- Propose payments that creditors consider fair — the DPP must offer a better return than sequestration would
The debt total must generally be at least £5,000 before a DPP is considered practical, though this is not a hard statutory minimum. Applications involving very small debts are unlikely to be approved when simpler informal routes are available.
Certain debts can be included in a DPP, including credit cards, personal loans, overdrafts, council tax arrears, utility bill debts, and HMRC debts. Some debts cannot be included, such as student loans, child maintenance obligations, and debts secured against property (like mortgages).
How Creditors Can Object — and What Happens
When a DPP application is submitted, creditors are notified and given the opportunity to object. A creditor can object on the basis that the proposed payments are too low, that the repayment period is unreasonably long, or that they would receive more through sequestration. However, even if one or more creditors object, the AiB can still approve the DPP using a 'fair and reasonable' test.
Under this test, the AiB weighs up whether the proposed programme offers a fair outcome relative to what creditors would realistically receive if the applicant were sequestrated instead. This means a DPP can proceed even without the agreement of every creditor — a significant protection for applicants who owe money to multiple parties.
Once approved, any creditor who objected is still bound by the terms of the DPP and cannot take independent action to recover their share of the debt while the programme is active and payments are being made.
What happens if payments are missed?
If payments fall behind, the DPP can be revoked. Before that happens, there is a process: the money adviser will usually try to arrange a variation to the programme — adjusting the monthly payment or extending the term — if circumstances have changed. According to the AiB, a DPP can be varied more than once if genuinely necessary.
If the DPP is revoked, all frozen interest and charges may become payable again, and creditors regain the right to pursue enforcement. This is one reason why setting a realistic and sustainable monthly payment at the outset is critical.
Questions about DAS or debt in Scotland?
We refer you to FCA-regulated debt advice specialists who can review your situation properly — no obligation, no judgement.
DAS Compared to Other Scottish Debt Solutions
For people in Scotland, DAS is one of three main formal routes. Understanding the differences is important.
DAS vs Protected Trust Deed
A Protected Trust Deed involves transferring assets to a trustee who manages repayment over a fixed period — typically four years — after which remaining unsecured debt is written off. Unlike DAS, a Trust Deed does not require repayment of the full debt. However, it does appear on a public register, may affect the ability to hold certain professional roles, and involves giving up control of assets including any equity in property. DAS, by contrast, requires full repayment but without the same level of asset scrutiny.
DAS vs Sequestration (Bankruptcy)
Sequestration is the Scottish equivalent of bankruptcy. It can result in debts being written off, but involves a formal court or AiB process, the appointment of a trustee, potential loss of assets including property, and lasting impacts on credit records. DAS is generally considered a less severe option because debts are repaid in full and the process is less disruptive to everyday life — though it does require the applicant to have sufficient income to sustain the programme.
DAS vs an informal Debt Management Plan
An informal Debt Management Plan (DMP) is not a statutory scheme — it is a voluntary agreement between the debtor and creditors, facilitated by a debt adviser. Creditors are not legally obliged to freeze interest or stop enforcement action under a DMP. DAS, by contrast, carries statutory force once approved: creditors are legally bound, interest is frozen by law, and enforcement is halted. For those who qualify, this legal certainty is a meaningful difference.
The Role of a Money Adviser in a DAS Application
A money adviser is essential to the DAS process — individuals cannot apply directly to the AiB themselves. The adviser's role includes carrying out a full income and expenditure assessment, identifying which debts can be included, calculating a realistic monthly payment, and submitting the application to the AiB on the applicant's behalf.
Free money advice for people in Scotland is available from local authority money advisers, Citizens Advice Scotland bureaux, and national services. Some private sector advisers also offer DAS services, though fees may apply in the private sector — this varies and applicants should confirm arrangements before proceeding.
Free debt advice is available from MoneyHelper (moneyhelper.org.uk), StepChange, Citizens Advice, and National Debtline. These organisations can explain DAS and other options without charge and without any obligation.
What DAS Does Not Do
It is worth being clear about what DAS does not provide, to avoid confusion:
- DAS does not write off debt — the full amount owed must be repaid (with interest frozen from the approval date, not cancelled)
- DAS does not repair a credit record — a DPP will be recorded on credit files and will affect credit scoring for a period
- DAS does not cover secured debts such as mortgages or hire purchase agreements — these must be managed separately
- DAS does not guarantee approval — the AiB must be satisfied the programme is fair and reasonable, and creditors retain the right to object
For someone whose debts are so significant that full repayment is not realistic even over an extended period, a Trust Deed or sequestration may be more appropriate options to explore with a regulated adviser.
How DAS Appears on the Public Register
The DAS Register is publicly available online and searchable by name. This means that anyone — including employers, landlords, or lenders — can search and find an active or completed DPP. While this is less prominent than sequestration (which is recorded in the Edinburgh Gazette), it is a form of public record that applicants should be aware of before proceeding.
The register records the debtor's name, address, the date the DPP was approved, and its current status. Once a DPP is completed — meaning all debts have been repaid — the record is updated to show completion and is eventually removed from the register in line with AiB retention policies.