What is the Debt Arrangement Scheme or DAS?

It is a scheme which allows you to pay your debts, with help & time to pay - without the need to attend court.

To be eligible you need to owe money to more than 1 creditor and agree to starting a debt payment programme (DPP) with the help of a DAS approved money advisor.

The DAS is a flexible scheme , which is free to the client and gives help in paying debts as long as there is an available sum left over after paying all priority/household expenses (priority debts, such as mortgage/rent/council tax/utilities)

It gives protection & time to pay during the term of the DPP. It is not available to anyone who has already been sequestrated (gone bankrupt) or signed a trust deed. It does not deal with council tax arrears when the council have gone to court & got a summary warrant.

If you want to go & see the form that the approved money advisor would complete, it is Form 3, on the Money Advice Scotland website, www.moneyadvicescotland.org.uk

DAS is a voluntary scheme, a money advisor helps work out a budget and how much a client can afford to pay and how long it will take to pay the debts. Provided debtors keep to the agreed payments, creditors cannot carry out enforcement action.

What is an approved money advisor?

They are someone who, with further training and has been approved by the DAS administrator to provide advice and act on behalf of the client to negotiate a debt payment programme (DPP)

Who is the DAS administrator?

They are responsible for maintaining the DAS register, which contains all the relevant details of debt payment programmes (DPP) - The Accountant in Bankruptcy (an executive agency of the Scottish Executive Justice Department) is the administrator.

Who is eligible?

To use Das you must be able to repay your debts which may include interest, as at this stage it is not clear whether creditors will freeze interest and they cannot be forced to do so.

You must be resident in Scotland, you may have more than one debt and you must have an available surplus after paying all priority/household expenses (priority debts, such as mortgage/rent/council tax/utilities)

How do I find an Approved Money Advisor?

Contact your local Citizens Advice Bureau or local council for advice. Do not pay for advice – when you can get it free. Before starting a DPP, you must have received independent money advice.

If the money adviser agrees that a DAS may work for you, they will ask your creditors to agree. If creditors all agree or are deemed to have agreed (because they do not respond) the DPP goes ahead. Even if creditors do not agree or object the DAS administrator or a Sheriff can still approve the DPP if it is reasonable to do so.

Creditors are then bound by the DPP as long as the debtor complies.

If your circumstances change, the agreement can be varied to take account of this provided all creditors agree or if the DAS administrator decides it is reasonable to do so.

Generally, you cannot borrow money after signing up for a DPP. Early indications are that the credit reference agencies will treat a DAS as if it were a type of bankruptcy, so your credit rating will not be helped by using a DPP to avoid formal insolvency. But borrowing money has got you into debt, and borrowing more is not going to help get out of it. So you shouldn’t be thinking about borrowing at the moment unless a DAS money advisor agrees it is the right thing for you to do.

What if my circumstances change?

The agreement can be varied to take account of this provided all creditors agree or if the DAS administrator decides it is reasonable to do so.

Return to Screen View >>