Debt Arrangement Schemes Frequently Asked Questions


A Debt Arrangement Scheme is a debt management solution for residents of Scotland.

It makes unsecured debt repayment more affordable for individuals with disposable income.

Before pursuing a DAS, read the commonly asked questions and their answers below and contact us for more information. We can help arrange a DAS and also can recommend some alternatives to you if something more suitable is available.

What is a Debt Arrangement Scheme (DAS)?

A DAS is a formal debt management solution consisting of a repayment plan called a Debt Payment Program, or DPP.

It is designed for people who cannot afford to make all their debt repayments under the original contract terms. The DAS reduces repayments for unsecured debts to an affordable level. This provides enough money for the debtor to pay secured debts, living expenses, and their unsecured debts through the DPP.

Am I eligible for a DAS?

Only residents of Scotland who can afford to make monthly payments on unsecured debt qualify for a DAS. This solution is used when the current repayment level is unaffordable but reduced payments over a reasonable time are feasible.

Even individuals who are eligible based on these criteria may not be approved for a DAS because lenders are not required to accept it. However, they very often will grant a DAS if you have no other way to repay unsecured debts. Even if lenders reject a DAS proposal, the Accountant in Bankruptcy serving as the DAS administrator may approve it.

How long can a DAS last?

A DPP established through a DAS can last as long as needed to repay unsecured debts, within a reasonable period, based on the total debt and how much the debtor can afford to repay.

It may end if the financial situation of the debtor improves to the level where full repayments are possible. Many people feel that a DAS lasting longer than ten years might be inappropriate, but this is guidance rather than a rule.

How do I initiate a DAS?

An authorized Money Adviser is the only party who can arrange a DPP. Jubilee Debt Management has access to qualified commercial Money Advisers and we would be happy to match you with one. Let us assess your financial situation to determine if a DAS is the best solution.

If so, we will initiate the process on your behalf along with our partners. They also provide support during the term of your repayment plan.

You also have the option to approach free-sector Money Advisors, usually accessed via your local CAB or through your Local Authority’s Money Advice team.

How much are the monthly payments in a DPP?

The monthly payment listed in a DPP is determined by what the debtor can afford. It is based on the amount of income that remains after bills and living expenses have been paid. The monthly payment may change to accommodate changes in income or expenditure. The goal is to repay covered debts quickly without making other financial commitments unaffordable.

Will creditors stop making demands once a DAS is in place?

As a formal debt management solution, a DAS prevents creditors from taking further action. Though they may continue to contact the debtor, the only payments required for covered debts are those included in the DPP. As long as debtors make their DPP payments as arranged, they will be protected.

How does a DAS differ from a Debt Management Plan (DMP)?

A DAS is similar to a DMP, but there are two important differences. A DMP is considered informal so lenders may cancel it at any time, while a DAS is formal. Once a DAS is in place, it is legally binding, providing protection to the debtor as long as agreed payments are made.

What disadvantages does a DAS have?

With a DAS, the debtor will not make the originally agreed repayments so their credit rating will suffer. Details of a DAS are recorded on the public DAS register, which will affect their ability to obtain credit. Your expenditure during DAS will be restricted to enable you to pay a reasonable amount towards your debts.

Though these are negative consequences, failure to deal with debt can have much more damaging results and might eventually leave you facing a more serious personal insolvency instead.