A Debt Arrangement Scheme is a way of managing unaffordable personal debts. It has been made available to residents of Scotland by the Scottish Government. It provides you with debt and general financial advice and presents you with additional time to repay your debts. Unlike an informal debt management plan, the Debt Arrangement Scheme provides you (and therefore your home also) with legal protection from your unsecured creditors. This prevents them from taking legal recovery action against you. The DAS also stops further interest from being added to your debts.

What are the benefits of a Debt Arrangement Scheme?

  • You are protected from further legal action by your unsecured creditors.
  • Current diligences (like a wage arrestment) must stop being enforced.
  • Your creditors cannot bankrupt you.
  • Interest costs (and other penalty fees) will be stopped from the date of approval and fully waived when your Debt Arrangement Scheme is completed.
  • Pressure from creditors will be lifted and you’ll have support from the DAS advisor.
  • Your home will be protected providing you keep up your DAS and mortgage/rent payments.
  • The Debt Arrangement Scheme has the flexibility to be amended if your circumstances change (for the better or the worse).
What are the potential drawbacks of a Debt Arrangement Scheme?
  • Your debts will usually need to be fully repaid. In some circumstances this can result in a longer repayment schedule than other debt solutions.
  • As with most debt solutions, your credit rating will be negatively affected by the Debt Arrangement Scheme.
  • DAS should be considered to be a “formal” debt solution.
  • Interest may be re-added to the debts if you fail to complete your DAS Scheme.
  • During your Debt Arrangement Scheme you cannot use further credit without receiving prior approval from the DAS Administrator or submitting a variation for essential credit.
For more information on a DAS, please contact us today on 0800 158 3539. Our friendly and professional staff will be happy to assist.