What is a Debt Arrangement Scheme?
A Debt Arrangement Scheme, or DAS, is a statutory debt management scheme established by the Scottish Government and available to residents of Scotland. The debt arrangement scheme is an alternative solution to Trust Deeds in Scotland, and IVA’s in England, allowing you to freeze the interest on your debts and repay over a period to suit you, whereas a Trust Deed would mean writing off substantial unaffordable debt.
A key benefit of entering a DAS is that all interest, fees, penalties or charges on your debts are frozen and are waived when your complete your Debt Payment Programme (DPP). In addition, as long as you maintain payments to your mortgage and car you do not have to worry about losing them.
Another major advantage of a DAS is that it prevents creditors from taking legal action against you. In fact, you do not have to have any further direct contact with your creditors.
This solution provides you with breathing space to allow you to focus on steadily repaying your debts rather than being contacted by your creditors or worrying about losing your home.
It offers the opportunity of a fresh financial start as all of your debts included in a DAS will be fully paid at the end of the scheme.