Debt Arrangement Scheme (DAS)
A Debt Arrangement Scheme, or DAS, is a statutory debt management scheme established by the Scottish Government and available to residents of Scotland. The debt arrangement scheme is an alternative solution to Trust Deeds in Scotland, and IVA’s in England, allowing you to freeze the interest on your debts and repay over a period to suit you, whereas a Trust Deed would mean writing off substantial unaffordable debt.
A key benefit of entering a DAS is that all interest, fees, penalties or charges on your debts are frozen and are waived when your complete your Debt Payment Programme (DPP). In addition, as long as you maintain payments to your mortgage and car you do not have to worry about losing them.
Another major advantage of a DAS is that it prevents creditors from taking legal action against you. In fact, you do not have to have any further direct contact with your creditors.
This solution provides you with breathing space to allow you to focus on steadily repaying your debts rather than being contacted by your creditors or worrying about losing your home.
It offers the opportunity of a fresh financial start as all of your debts included in a DAS will be fully paid at the end of the scheme.
In this guide
- What kinds of debt can be included in a DAS?
- How does a DAS work?
- Advantages and Disadvantages
- Why choose Carrington Dean to help you with a DAS?
- Frequently Asked Questions
- Other Solutions
It is generally unsecured debt such as:
- Bank and building society loans and overdrafts
- Credit cards, store cards and charge cards
- Home / online shopping catalogues
- Council Tax arrears
- Utility bill arrears
- Mortgage Arrears can be included in certain circumstances
You need to consult a DAS approved Money Adviser who will make an application on your behalf. Individuals cannot make an application. You can contact us via our Debt Calculator, which will provide you with an indicative minimum monthly payment required for each solution. We also ask for contact details as a full income and expenditure is required in order to provide a definitive monthly payment and best debt advice.
Your Money Adviser will have a confidential discussion with you about your financial position which will include details about your family, your income and expenditure, any assets you may have as well as the amount of your debts. This will help them calculate your disposable income to make a monthly payment to your creditors.
Your Money Adviser will assess your position and will be able to inform you whether a DAS is the best option for you. Any fees charged and how these are deducted will be clearly explained to you.
Once you decide that a DAS is the best option for you, your Money Adviser will submit an application for a DPP, contact your creditors for their approval.
Your creditors have twenty one days to respond to the application and if they do not respond they will be presumed to have consented. If one or more of your creditors object, the DPP will be considered by the DAS Administrator (The Accountant in Bankruptcy) and deems that the application is “fair and reasonable” they can legally force your creditors to comply with it.
Once approved you make an affordable monthly payment to an approved Payments Distributor. A monthly management fee is deducted and the balance is distributed to your creditors on a monthly basis. Your Creditors, not you, pay for the approved Payment Distribution service.
Once you have made your last scheduled payment in terms of the DPP, all of your debts included in it will have been repaid in full. The duration of the DPP can vary according to individual circumstances – it can be as long as 10 years.
- It prevents creditors from taking legal action against you.
- A Money Advisor deals with your creditors, relieving you of the stress.
- Interest, fees. Penalties or other charges are frozen from the date you apply for a DPP and are written off completely when it is completed.
- Your home will not be affected by the DAS as long as you maintain mortgage or rent payments on it.
- Sole traders may be able to include business debts in the DAS.
- Monthly payments are based on what you can reasonably afford to pay.
- If your circumstances change it may be possible to apply to vary the monthly payment amount and / or apply for a payment holiday of up to six months.
- The DPP will last until your debts are repaid – there is no fixed time period.
- Individuals cannot apply for a DAS – they must consult an Approved Money Advisor.
- Your credit rating may be affected if you enter a Debt Payment Programme and may affect your ability to obtain credit in the future.
- A DAS is only available to Scottish residents.
Carrington Dean employs DAS Approved Money Advisers, who have been approved by the Scottish Government to advise and set up Debt Payment Plans under the Debt Arrangement Scheme.
We have extensive experience in this field and in the full range of debt solutions making us well-equipped to provide you with information on all of your available options to help you make an informed choice about the solution best suited to your needs.
Carrington Dean is Scotland’s largest independent debt solutions business who has successfully helped more than 20,000 people to resolve their financial difficulties. If you would like to discuss your options, please contact us on 0141 221 2323.
Frequently Asked Questions
You are not able to apply if you are in a Protected Trust Deed, are bankrupt or are subject to a bankruptcy order.
In certain situations business debts can also be included in your debt payment programme. Please contact us on 0141 221 2323 for more information and advice.
If your circumstances change in any way, and you are struggling to meet your monthly contributions, please contact your Money Advisor who can assess your situation. They may take the decision to apply, on your behalf, to the DAS Administrator for a payment holiday or a variation to reduce the level of your payments, depending on the severity of your circumstances.
As long as your missed payment is as a result of an agreed payment holiday, then, subject to certain conditions, your Creditors are still prevented from taking legal action against you.
Normally, mortgage arrears will not be included in your Debt Payment Plan. You must be able to make your monthly contractual payments and reach an agreement with your lender with regard to your arrears. Our Money Advisors will be able to give you further advice.
You are legally bound to make the agreed monthly payment agreed with your creditors. You can make increased payments to your Debt Payment Plan, however, if this is a regular occurrence then it may be advisable to make an application to vary the DPP.
If you have any further questions please do not hesitate to contact us on 0141 221 2323.