Debt arrangement scheme

The debt arrangement scheme is a debt-payment arrangement system set up by the Scottish Government.

The scheme allows you to repay your debts at an affordable amount each month. While you are on a debt arrangement scheme you are protected from diligence or being made bankrupt by your creditors.

You may be able to apply for a debt arrangement scheme if:

You live in Scotland
Have more than one debt
Have some money left over, after you have worked out your essential expenditure and drawn up a personal budget

Under a debt arrangement scheme you make one affordable monthly payment to your debts. Your payment is sent to an approved payment distributor who sends the money to your creditors. If you make the arranged payments your creditors can not add any more interest or charges to your debts.

Once you make an application for a debt arrangement scheme, you are protected from diligence for six weeks while your application is waiting to be approved. Once your debt arrangement scheme has been approved, you will continue to have this protection as long as you keep up the payments arranged.

Once you have repaid your debts in full your debt arrangement scheme will end.

The scheme will be cancelled if you don’t make the payments that are required. Your creditors can then add back on to your debt all the interest and charges that had been frozen when you started the debt arrangement scheme.

FAQs

How do I find an Approved Money Advisor?

Scotland > Debt solutions > Debt arrangement scheme

Contact your local Citizens Advice Bureau or local council for advice. You can also search for a local Approved Money Adviser.

What if my circumstances change while I am on a debt arrangement scheme?

Scotland > Debt solutions > Debt arrangement scheme

A debt arrangement scheme can be varied to take account of your change in circumstances, provided all creditors agree or if the DAS administrator decides it is reasonable to do so.

Can a debt arrangement scheme be cancelled?

Scotland > Debt solutions > Debt arrangement scheme

The debt-payment programme is most likely to be revoked where:

You have failed to meet the conditions
You have made untrue statements in your application
You miss three payments

A debt-payment programme must be ended where no payments have been made for six months.

One of your creditors can ask for the debt payment programme to end if:

You no longer have an approved money adviser without 'good cause' for example, you have failed to co-operate and the approved money adviser has withdrawn their services as a result
You have broken one of the conditions without good cause
You have not kept up with the agreed payments

Will a debt arrangement scheme affect my credit rating?

Scotland > Debt solutions > Debt arrangement scheme

A debt arrangement scheme will show on your credit rating and on the debt arrangement scheme register. This is likely to make it more difficult to borrow money in the future.