Check If You Qualify

What are the pros and cons of a debt arrangement scheme (DAS)?

Reviewed 15th May 2024

The debt arrangement scheme, or DAS, is a government-backed procedure designed to offer residents of Scotland who are experiencing escalating debt the chance to fully repay their creditors rather than declare full insolvency. Every type of debt solution has its benefits and drawbacks, so let’s have a look at some of the pros and cons of DAS.

Sharon McDougall Square

Sharon McDougall

Debt Adviser

Call: 0800 0639 250

Scotland Debt Calculator

Get a rough indication of what your repayments might be under each of our different debt solutions.

Your Total Debt

£0 - £5,000

£5,000 - £10,000

£10,000 - £20,000

£20,000+

Your Employment Status

I am employed

I am self-employed

I am unemployed

I am a student

I am retired

Your Total Monthly Income

£0 - £1,000

£1,000 - £2,000

£2,000 - £3,000

£3,000+

What can you pay monthly towards your debt?

£0 - £100

£100 - £200

£200 - £300

£300+

What are the pros of the debt arrangement scheme?

Payments are affordable

You can repay your creditors at a rate that’s affordable to you, with repayments being calculated after priority payments such as your mortgage and utility bills have been accounted for. This provides you with a budget for living, and helps to prevent your financial situation from worsening.

Debt payment plans are flexible

It’s common for debtors’ circumstances to change during the course of a debt arrangement scheme, but DAS is flexible so if your income falls, repayment amounts may be adjusted to prevent the agreement failing.

Protection from creditors

Creditors have various methods of enforcement action available to them in Scotland, but DAS offers you protection from these forms of legal action. They could include earnings arrestment, an attachment order for goods outside the home, or enforced bankruptcy. This type of protection is a valuable advantage in helping you escape debt, as long as you continue to meet the terms of the arrangement.

Interest and charges are frozen

The addition of interest and charges to the original debt commonly causes debtors to enter a ‘debt spiral.’ This makes repayment very difficult under normal circumstances, especially if you owe several debts, as they increase at a rapid rate.

No contact with creditors

You don’t have to remain in contact with creditors once the debt payment programme comes into effect – all communication should be channelled through the insolvency practitioner overseeing the arrangement.

Avoids bankruptcy

DAS allows you to avoid sequestration (the Scottish term for bankruptcy), and the subsequent loss of assets including property. You also avoid having to release equity in your property if you’re a homeowner, as is sometimes a requirement when you enter into a trust deed.

Cons of the debt arrangement scheme

Debts aren’t written off

One of the main features of the debt arrangement scheme is that creditors are repaid in full. No debt is written off at the end of the agreement, which means the debt payment programme you sign up to can last a long time.

Can take a long time to repay

As debts are fully repaid, it can take several years or more to complete a debt payment plan. This obviously depends on your individual circumstances, such as your level of debt and monthly income, but the arrangement can last much longer than other formal debt solutions such as a trust deed or sequestration.

Negatively affects your credit rating

Entering into a debt arrangement scheme adversely affects your credit file. It remains on your credit record for six years, and can make obtaining credit or further borrowing difficult during this time and beyond.

You deed to owe more than one debt

One of the eligibility requirements for DAS is that you owe more than one debt. This means that if a single creditor is owed a large amount, you’ll be ineligible for the scheme and may have to consider alternative options. If you would like to find out more about the debt arrangement scheme and how it could help you escape debt, Scotland Debt Solutions are here to provide professional advice and guidance. We specialise in helping Scottish residents out of debt, and offer free consultations at any of our five offices around Scotland.

Debt Report

Get your instant Debt Report today

Find out which debt solution is best for you

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.

Get Your Report
Debt Report V2
Das Banner Bottom

Related News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.

map pin

Glasgow

2 Bothwell Street, Glasgow, G2 6LU

The Team

Meet our qualified Scottish based team

100% Confidential Advice

Chelsea Williams David Tannock Sharon McDougall Square Kelly Jones

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

The team

Meet our qualified Scottish based team

100% Confidential advice

Chelsea Williams Thomas Mckay Kelly Jones Tannock1

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.

ICAS Insolvency Practitioners