Debt Arrangement Scheme (DAS)

The Debt Arrangement Scheme (DAS) was introduced in 2004 by the Scottish Government.

DAS offers the opportunity for you to repay your unsecured creditors by making reduced payments over an agreed reasonable period of time, usually up to 10 years.

A Repayment level is worked out by you with the assistance of either a recognised money advisor or a company/organisation recognised as a provider of money advice.

Once the DAS is set up, you would make your regular payments (normally monthly) to a payment distributor.  In turn, the distributors would then make the payment to your creditors.

DAS offers protection from future legal action by creditors as well as freezing interest and charges on your debts.

A set up fee may be charged by money advisors in the private sector, although free advice may also be available through your local council, Citizens Advice Bureau or independent money advice provider.

The payment distributor may also charge a fee.  This is typically between 6% and 10% of your payments and is deducted from your regular contributions toward the scheme.  It is not an additional cost to you but rather deducted from the sums due to your creditors.

As the DAS is a repayment programme that involves you repaying your unsecured debts in full, any assets that you own will not be included in the scheme.

Particular consideration should be given to the level of your debt, the time period over which the reduced payments would be required to be made and also to the effect, if any, that either a Protected Trust Deed would have on your assets.