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.

Do you Qualify?

Should you need to contact us, here are our details.

My Trust Deed
368 Alexandra Parade, Glasgow
Glasgow
G1 1RW

0141 406 3150
info@mytrustdeed.co.uk

On this page

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.

How does a DAS work?

1

You need to consult a DAS approved Money Adviser who will make an application on your behalf. Individuals cannot make an application. You can contact us via our Debt Calculator, which will provide you with an indicative minimum monthly payment required for each solution. We also ask for contact details as a full income and expenditure is required in order to provide a definitive monthly payment and best debt advice.

Your Money Adviser will have a confidential discussion with you about your financial position which will include details about your family, your income and expenditure, any assets you may have as well as the amount of your debts.  This will help them calculate your disposable income to make a monthly payment to your creditors.

Your Money Adviser will assess your position and will be able to inform you whether a DAS is the best option for you.  Any fees charged and how these are deducted will be clearly explained to you.

2

Once you decide that a DAS is the best option for you, your Money Adviser will submit an application for a DPP, contact your creditors for their approval.

3

Your creditors have twenty one days to respond to the application and if they do not respond they will be presumed to have consented.  If one or more of your creditors object, the DPP will be considered by the DAS Administrator (The Accountant in Bankruptcy) and deems that the application is “fair and reasonable” they can legally force your creditors to comply with it.

4

Once approved you make an affordable monthly payment to an approved Payments Distributor. A monthly management fee is deducted and the balance is distributed to your creditors on a monthly basis.  Your Creditors, not you, pay for the approved Payment Distribution service.

5

Once you have made your last scheduled payment in terms of the DPP, all of your debts included in it will have been repaid in full. The duration of the DPP can vary according to individual circumstances – it can be as long as 10 years.

See if you are Eligible today!

Need to speak to someone?
0141 406 3150

Advantages and Disadvantages

Advantages

It prevents creditors from taking legal action against you.
A Money Advisor deals with your creditors, relieving you of the stress.
Interest, fees. Penalties or other charges are frozen from the date you apply for a DPP and are written off completely when it is completed.
Your home will not be affected by the DAS as long as you maintain mortgage or rent payments on it.
Sole traders may be able to include business debts in the DAS.
Monthly payments are based on what you can reasonably afford to pay.
If your circumstances change it may be possible to apply to vary the monthly payment amount and / or apply for a payment holiday of up to six months.

Disadvantages

The DPP will last until your debts are repaid – there is no fixed time period.
Arrears of secured debts cannot be included. The Money Adviser will assist you to make separate arrangements for these. Any repayments towards these will be classed as “ongoing liabilities” when calculating disposable income.
Individuals cannot apply for a DAS – they must consult an Approved Money Advisor.
Your credit rating may be affected if you enter a Debt Payment Programme and may affect your ability to obtain credit in the future.
A DAS is only available to Scottish residents.

Why choose Trust Deed.org

Trust Deed.org employs DAS Approved Money Advisers, who have been approved by the Scottish Government to advise and set up Debt Payment Plans under the Debt Arrangement Scheme.

We have extensive experience in this field and in the full range of debt solutions making us well-equipped to provide you with information on all of your available options to help you make an informed choice about the solution best suited to your needs.

Trust Deed.org is Scotland’s largest independent debt solutions business who has successfully helped more than 20,000 people to resolve their financial difficulties. If you would like to discuss your options, please contact us on 0141 406 3150.

Other Solutions

Feel a DAS is not for you? Well we have many different debt solutions that cater to different debt levels and circumstances. Please click the links below.