The debt arrangement scheme (DAS) is a debt management solution which enables people who are experiencing debt problems to enter into an arrangement with their creditors to reduce their repayments by paying back over a longer period of time. With many people struggling with debt in Scotland, DAS is an effective option that gives people additional time to resolve their problems.
How it works
This is a formal debt solution tool which offers both a route to resolving debt problems and protecting people from the pressures and demands of creditors. Interest and charges are frozen as part of the process and written off once the arrangement comes to a close. The borrower enters into a debt payment programme and makes a single regular payment to an authorised DAS administrator who then distributes the payment to the creditors.
The scheme is backed by the Scottish Government and controlled through the Accountant in Bankruptcy.
An effective debt option
Assistance and relief is often needed to help people find the debt solutions they need and the debt arrangement scheme is a proven and effective method to do this.
Although it is controlled through the Accountant in Bankruptcy, DAS is not bankruptcy. It is a formal and legal agreement but in the end is a simple method of reducing debt payments by extending the repayment period. The scheme itself takes account of people’s disposable income and can last for as long as all parties agree is an acceptable time period. People would normally repay the full amount of their debt through this scheme.
The Scottish Government is keen on this scheme as it not only protects the debtor but also helps to ensure the creditors receive the funds they are due. By making it more accessible to people they hope to bring debt resolution and relief to as many people in Scotland as possible.