Disadvantages of a Scottish Debt Arrangement Scheme (DAS)

In contrast to the other common formal insolvency procedures in Scotland such as trust deeds and sequestration, a debt arrangement scheme exists until your debts are fully repaid – meaning your debts will not be written off. It could take you months or years to reduce your debts, depending on the amount you have.

• Credit Rating

It won’t come as any surprise but your credit rating may be affected – usually for six years. Your name will be published in the Debt Arrangement Scheme Register which is a public register. The reality is that few people will see it but if anyone does search for your name, they’ll be able to see you subject to a debt arrangement scheme.

• Longer Repayment Period

A debt arrangement scheme can last for several years if you have large debts and this period can be extended if you have to reduce the amount you pay to creditors each month.