Reviewed 20th December 2021
The process duration depends on the amount of debt involved; it could take several years to repay.
It is a viable alternative to sequestration (bankruptcy) and has a number of benefits which we have touched upon in our specific DAS advantages guide.
However, it goes without saying that all debt management processes have their drawbacks; it’s often a case of having to one step backwards to ultimately move two steps forward. The debt arrangement scheme is no different and here we analyse the key disadvantages of a DAS which you should be aware of:
• Debts Not Written Off
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 be debt free, depending on the amount of debt you have.
• Credit Rating
It won’t come as any surprise but your credit rating may be affected – usually for six years. Public Notice
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.
Our debt report is completely easy to use and is a great starting point for anyone with over £5000 of debts looking to take control of their debt issues. By providing us with details of your incomings and outgoings we can suggest the most appropriate way forward for you.
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Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
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More on DAS
We can help you with...
If you’re a Scottish resident struggling with personal debts, there are a number of solutions available to you that can appease your creditors and put you on the path to financial recovery.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.