Debt Arrangement Scheme (DAS Scheme)
What is the Scottish Debt Arrangement Scheme?
A Scottish Debt Arrangement Scheme (or DAS for short) is a debt solution that was introduced by the Scottish Government specifically for residents of Scotland. The scheme gives you some breathing space by allowing you to pay off your debts over a longer period of time, up to around 10 years. Uniquely, the Scottish Debt Arrangement Scheme also freezes the interest and charges that have accrued on your debt; affording you more time to pay it back, without increasing what you owe.
You only pay what you can afford each month, after covering the cost of supporting yourself and your family. Furthermore, your car and home are not considered in a DAS, so you will not be forced to use them to raise funds for your creditors.
To enter a Scottish Debt Arrangement Scheme, you have to sit down with a Money Adviser and work out how much you can afford to pay each month towards your debts. After consulting with your creditors, your Money Adviser then draws up a personal debt repayment programme and submits it to your creditors. If they all agree then your programme is approved.
However, unlike a Scottish Trust Deed, if it is not approved by your creditors, then the DAS Administrator, a senior civil servant working for the Scottish Government, will assess whether your programme is ‘fair and reasonable’. If they decide it is a ‘fair and reasonable’ plan, then she will approve it.