
Debt Arrangement Scheme
The Debt Arrangement Scheme (DAS) offers legal protection and a structured repayment plan for individuals facing unaffordable debt. DAS offers an affordable way to repay your debts with all interest and charges frozen.
Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting Money Helper.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.

What is the Debt Arrangement Scheme?
The Debt Arrangement Scheme (DAS in Scotland) is a statutory debt management plan, introduced by the Scottish Government in 2004 to help individuals repay their debts in full.
If you need a helping hand to get out of debt, DAS could be a suitable option for you. Under DAS, you apply for a Debt Payment Programme (DPP) that allows you to pay off your debts free from interest, fees and charges over an extended period of time, ensuring payments are affordable whilst giving you protection against legal action from your creditors and safeguarding your assets, like the family home.
The Debt Arrangement Scheme in Scotland is a viable alternative to other formal debt solutions such as Protected Trust Deeds or, Minimal Asset Process / Sequestration.
How does DAS work?
If you choose to enter into a DPP under DAS, the first steps involve your money adviser proposing the DPP to your creditors. A DPP under DAS is proposed to creditors in the following way:
- Proposals are sent to all known creditors giving them 21 days to accept or reject the proposal.
- If no creditors reject the proposal, then the DPP is approved automatically.
- If creditors reject the proposal and they are owed up to 10% of the total debt, then the DPP application will be automatically approved.
- If one or more creditors reject the proposal and they are owed more than 10% of the total debt, then the DPP can still be approved if the proposal is judged to be ‘fair and reasonable’ by the DAS Administrator (the Government agency responsible for DAS).
- If the DPP proposal is not approved, then you have a right of appeal, however, you may need to consider other solutions such as a protected trust deed or bankruptcy.
Following approval, it is possible that your circumstances may change whilst you are in your DPP, in which case the DPP may be varied to accommodate these changes. The steps involved include:
- Your Money Adviser will prepare an updated DPP proposal and present this to your creditors – the same 10% rule described above applies to a variation of a proposal and the DAS Administrator will apply a ‘fair and reasonable’ test, if required.
- If your proposed variation is not approved, then you have a right of appeal, however, you may need to look at other solutions such as a protected trust deed or bankruptcy.
If you experience financial difficulties during the period of your DPP, the following help is available to you
- You could be granted a one-month payment break, to allow you to pay for an emergency expense – you can have 2 payment breaks in any 12-month rolling period.
- If you need a longer payment break as a result of, for example, illness or unemployment, or an unplanned increase in expenditure then this could be provided for a period of up to 6 months, this type of payment break can be applied for as many times as is required during your DPP provided you meet the necessary criteria.
How long will my DPP last?
A DPP can last for any reasonable length of time (normally up to 10 years) under the terms of the debt arrangement scheme, depending on the level of debt and how much you can afford to pay.
Who can act as my Money Adviser for DAS?
Only qualified Money Advisers can advise on and manage a DPP under DAS – a Money Adviser may be employed by a Citizens Advice Bureau, local authority or the Money Adviser can be an Insolvency Practitioner (or suitably qualified member of their staff)
The Money Adviser at Harper McDermott is Thomas Fox and we have an experienced team working with him to ensure our clients receive the best possible level of customer service.
Is the Debt Arrangement Scheme suitable for me?
- The Debt Arrangement Scheme (DAS) may typically be suitable for you if you have money left over at the end of each month (after you’ve paid your normal outgoings such as food shopping, rent/mortgage and utility bills) and you can clear your debts in a reasonable amount of time.
- The easiest way to find out whether the debt arrangement scheme may be a suitable option for you is to get in touch with our DAS Scotland advice team.
- You can only apply for DAS if you live in Scotland.
DAS Scotland Qualification Criteria
To qualify for the Debt Arrangement Scheme you would typically
- Have at least one debt.
- You have taken advice from a DAS approved Money Adviser, such as Harper McDermott
- You live in Scotland.
- You have surplus income to repay your debt(s) after paying for your general living expenses and household bills
- You are not in a trust deed or currently bankrupt
Couples who live together as spouses, civil partners of each other or are living together as if spouses of each other can apply for a joint DPP, even where they are not jointly liable for any debt(s).
What Our Customers Are Saying
Advantages & Disadvantages of the Debt Arrangement Scheme
- You make one, affordable payment to repay your debt(s)
- Your creditors cannot take legal action against you to recover the debts owed to them
- Any assets you own, including your home, are unaffected by DAS
- Interest, fees and charges are frozen from the date your application is made and are written off when your DPP is completed
- There are no fees to pay to apply for or have your DPP administered – see section on Fees for further info
- An earnings arrestment will be stopped on the approval of your DPP under DAS
- If your creditors reject your application, they can be forced to comply if the proposal is deemed to be ‘fair and reasonable’ by the DAS Administrator
- Mortgage, secured loan and rent arrears can be excluded from your DPP
- In DAS there is no debt written off, only relief from further interest, fees and charges. Therefore, in DAS you are deemed to be repaying your debts in full and the repayment period is likely to be longer than the alternatives of a Protected Trust Deed or Sequestration
- Your credit rating may be adversely affected, in a similar way to Trust Deeds and Sequestration
- Your DPP may be rejected by creditors and deemed to be not ‘fair and reasonable’, meaning you may need to consider other options such as a Protected Trust Deed
- Your DPP will be registered on the DAS Register, a publicly available online register of all DPPs in Scotland
- If you do not comply with the conditions of your DPP then it may be revoked. Creditors are then free to pursue legal action against you and to add back their interest, fees and charges

Find out more
Contact our team at Harper McDermott to find out more about the Debt Arrangement Scheme and any of the other debt solutions available to you in Scotland.
Harper McDermott are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today!
Further Information
We provide advice on all statutory debt solutions available in Scotland, see below for more information:
Debt Arrangement Scheme FAQs
Yes, although you can leave out any arrears you have with your mortgage or rent payments.
There are no setup fees to enter into the Debt Arrangement Scheme. But, there are also no ongoing monthly management fees payable by an individual entering into the DAS. This is the same for all individuals whether they use a private sector firm (e.g. Harper McDermott Ltd) or a public sector organisation (e.g. CAB or local authority Money Adviser).
The costs of administering a debt payment programme are borne by the creditors i.e. from every £ received into the scheme, 22p is used to pay for the costs; this 22p is paid to the DAS Administrator (2p) and the Money Adviser (20p).
The remaining amounts are distributed amongst all creditors on a pro rata basis and a successfully completed DPP deems all debts to be repaid in full.
For more information on DAS fees call 0141 278 3989.
Yes. Once your DPP becomes approved then by law any earnings arrestments currently in force have to be cancelled. Your continuing money adviser will ensure that this happens for you.
A continuing money adviser will act for you throughout the course of your DPP, liaise with your creditors, carry out an annual review, process variations and generally be on hand to provide advice and guidance to you until the DPP is completed. The legislation governing DAS outlines the criteria to become a continuing money adviser. The Insolvency Practitioner at Harper McDermott qualifies to act as a DAS approved money adviser.
The fair & reasonable test is the criteria that the DAS Administrator uses when deciding whether to approve or reject a DPP application. It will take into account factors such as the total period of time that the DPP will last and the extent to which creditors have consented. If your continuing money adviser thinks that your proposals are unlikely to pass this test then we would advise you of this before you sign up and would discuss other alternative options with you instead.
Following contact with Harper McDermott and having received initial advice, with your approval, one of our insolvency practitioners will act as your continuing money adviser and will then make a DPP application on your behalf. Your adviser will provide more details following your initial contact.
No. Your home is not affected. DAS was brought in by the Scottish Government so that people could have access to a safe way of paying back their debts without any risk to their homes. In fact, DAS should make it much less likely that you would lose your home as it should be easier for you to afford your mortgage / rent payments and therefore reduce the risk of you defaulting. Moreover, you cannot be sequestrated (made bankrupt) by your creditors once in an approved DAS DPP, which would otherwise put your home at risk.
No. You would make a single payment to an approved Payments Distributor, who would distribute this between all of your creditors for you. As long as you stick to your side of the agreement, your lenders wouldn’t be able to take any action against you. If you are still getting contact from creditors after approval of your DPP then you would inform your continuing money adviser who would then get in touch with them again on your behalf to stop this.
No. Couples who are spouses/civil partners, or living together as if so, may apply for a joint DAS DPP. A joint application can be made regardless of the existence of joint debts.
As long as you maintain your repayments under the finance agreement then there should be no reason that you would have to give up your car.
This is a public register which anyone can access free of charge provided they have your full name and DAS case reference, as well as the trading name of your business, if applicable, and lists individuals or couples that have applied under DAS, intimated that they intend to apply or have an approved DAS DPP. It would include details of your name, date of birth and home address.
A Scottish Government official (The Accountant in Bankruptcy), who oversees the administration of every DAS DPP, is responsible for maintaining the DAS Register and responsible for approving DPPs, Money Advisers and Payments Distributors. Their costs are met by your creditors.
Yes it is likely to do so. If you participate in DAS then your details are recorded on the DAS register. Creditors and credit reference agencies check this register regularly and may update your credit file to reflect this information. You are also defaulting on your original contractual agreements with creditors so they may mark these defaults on your file.
It will often be possible to continue to use your existing bank account, however in certain circumstances you may need to switch to a new bank account provider – particularly if you have an overdraft or if you owe money to your bank that is being included in the DAS.
Yes. It freezes interest, fees and charges from the date you apply for your DPP. As long as you fully complete the DPP then these cannot be added back by your creditors.
It is possible that entering into DAS could affect your existing employment and prospects for future employment. If you are in any doubt then you should review your employment contract and/or speak confidentially to your HR department. If you are working in the financial services industry, police, armed forces, prison service, licensed HGV driver, Chartered Accountant or are a member of any recognised professional body then you should take further advice, this will be discussed by your adviser prior to you making an application for a DPP under DAS. This list of affected jobs/careers is not exhaustive.
No. Your car is not affected by entering a DPP. If you wish to clear your debts more quickly by selling/downgrading your car then you are free to do so, but there is no requirement for this.
We would not contact your employer (unless you asked your payment distributor in order to collect your payments directly from your salary).
A Debt Payment Programme (DPP) is a programme you would agree to under the DAS scheme. It sets out how much you are able to pay towards your debts each month, and how long you’d be expected to make those payments before the debts were cleared entirely. The DPP is proposed to your creditors and once approved then your creditors are bound by its terms as long as you stick to the agreement.