Debt Arrangement Scheme: Help & Advice.
Solution for England, Northern Ireland and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
Honesty and Integrity
Support and Guidance
Ethical Practices
We make a difference
To find out more about managing your money and getting free advice, visit Money Helper
Authorised and regulated by the Financial Conduct Authority
Honesty and Integrity
We make a difference
Last reviewed: 28 July 2026
Reviewed by: Debt Advisory Services (Scotland) Limited, FCA firm reference 671573
How Can A Debt Arrangement Scheme Help Me?
It helps you pay back your debts in a manageable way without the threat of court action from the people you owe money to (creditors). Under DAS you can make one regular payment into a debt payment programme (DPP). This payment is then divided up and sent to your creditors. You can apply for a DPP with any amount of debt.
What Is A Debt Arrangement Scheme?
A Debt Arrangement Scheme (DAS) is a formal, government-backed debt solution available only in Scotland, run by the Accountant in Bankruptcy. It lets you repay your debts in full through one regular payment, split between your creditors, over a period considered reasonable for your circumstances, generally up to around 10 years.
Unlike bankruptcy or a Trust Deed, a DAS is not a form of insolvency, so it doesn’t appear on the Insolvency Register or carry the same restrictions. Interest and charges are frozen once your proposal is submitted, and your creditors can’t take legal action against you while you keep to the agreed terms.
How Does A Debt Arrangement Scheme Work?
A DAS works by assessing what you can afford, agreeing this with your creditors, and then collecting one regular payment from you to distribute between them. This payment plan is called a Debt Payment Programme (DPP). Here’s how it works, step by step:
1. Assess Your Budget
Your money adviser reviews your living costs and income to work out how much you have left over to put toward your debts.
2. Your DPP Proposal Is Sent To Creditors
Your chosen payment amount is submitted to your creditors as a DPP proposal, who can see both the amount offered and what’s left in your budget. Interest and charges are frozen by law once they receive it.
3. Make One Regular Payment
Once your DPP is approved, you make one regular payment, typically monthly, which is divided and distributed to your creditors on your behalf.
4. Repay In Full Over An Agreed Term
You continue paying until your debts are repaid in full and your DPP is complete. It typically runs for up to around 10 years, though this depends on your circumstances and what your creditors agree to.
"The team were supportive from the beginning. The advice was clear making it very easy to decide a solution path."
Linda
12 Jun 26
Verified company on Trustpilot
Am I Eligible For A Debt Arrangement Scheme?
You may be eligible for a Debt Arrangement Scheme if you:
Live in Scotland
Have at least one unsecured debt, such as a credit card, loan, or payday loan, there's no minimum amount, but you'll need to show you can't manage your current payments
Have enough income to make regular payments while still covering your essential living costs
Are in arrears or struggling to keep up with payments, though you don't need to be at risk of legal action to apply
Aren't currently in an active bankruptcy or sequestration process
Are willing to work with a Money Adviser and commit to your agreed payments for the full length of the scheme
What Debts Can Be Included In A Debt Arrangement Scheme?
A DAS covers unsecured, non-priority debts, borrowing where non-payment doesn’t put your home or an asset at immediate risk.
Debts that can usually be included:
- Credit cards, store cards, and catalogues
- Personal loans, payday loans, and overdrafts
- HMRC debts, such as income tax you're personally responsible for
- Council tax and utility arrears
- Informal debts owed to family or friends
Debts that cannot be included:
- Secured debts, such as your mortgage or car finance (hire purchase)
- Student loans
- Court fines
- Child maintenance arrears
What Are The Advantages Of A Debt Arrangement Scheme?
- You won't have to sell your belongings or property, such as your home or car, though you can choose to if it helps you pay off your debts faster
- Once your DPP is approved, creditors can no longer take enforcement action, such as earnings or bank account arrestments
- Interest and charges are frozen once your proposal is submitted, and cancelled once your DPP is complete
- A DPP doesn't prevent you from working in most jobs or taking up public office, unlike some other debt solutions
- Your debts are repaid in full, so there's no formal insolvency record and no impact on your ability to act as a company director
- You can apply for a payment break of up to 6 months if your disposable income drops significantly, or a short crisis payment break for a sudden emergency
What Are The Disadvantages Of A Debt Arrangement Scheme?
- You may need to make regular payments for a long period, sometimes up to around 10 years, to repay your debts in full
- Your credit rating will be negatively affected for the duration of your DPP
- You'll face strict limitations on borrowing while your DPP is active
- If you have mortgage or rent arrears, a DPP doesn't stop your lender or landlord from taking action to reclaim your home
- Because your debts are repaid in full rather than reduced, your monthly payment may be higher than under a solution that writes off part of your debt
- You cannot add new debts to your DPP once it's in place, any new debt must be managed separately
How Much Does A Debt Arrangement Scheme Cost?
There are no fees on top of your debt, your fees are deducted from the payments you make, so the total amount you repay never exceeds your original debt.
Three organisations take a share of each payment:
Fee | Recipient | Share |
Continuing Money Adviser Fee | Your money adviser | 15% |
Payment Distributor Fee | The organisation collecting and distributing your payments | 5% |
DAS Administrator Fee | The Scottish Government body overseeing DAS | 2% |
This means 22% of each payment covers fees, and the remaining 78% goes to your creditors. You can find the full breakdown on our dedicated fees page.
Not Sure A Debt Arrangement Scheme Is Right For You?
If you’re unsure whether a Debt Arrangement Scheme is right for you, speaking to a qualified adviser is the best next step. They’ll assess your full situation before recommending any solution.
At Debt Advisory Services, we’re your partners in achieving financial stability, committed to honest, ethical, and supportive advice every step of the way.
Let us help you regain control of your finances and get your life back on track. Together, we make a difference.
FAQs
What is a Debt Arrangement Scheme (DAS)?
A Debt Arrangement Scheme (DAS) is a debt management solution in Scotland that lets you repay your debts in affordable monthly instalments over an agreed period, while being protected from legal action by creditors. Interest, fees, and charges are frozen for the duration of your arrangement.
How long does a Debt Arrangement Scheme last?
The length of a DAS depends on how much you owe and what you can afford to pay each month. It’s generally expected to run for up to around 10 years, though you can repay faster if your circumstances improve, and there’s no fixed legal maximum.
Can I pay off a Debt Arrangement Scheme early?
Yes, you can complete your DAS early by paying a lump sum to clear your remaining balance, rather than waiting out your full term. Speak to your Money Adviser to arrange this, since your remaining debt and any final fees will need to be calculated first.
How long does a Debt Arrangement Scheme stay on my credit file?
A DAS stays on your credit file for a minimum of six years, even after it’s completed. This can make it harder to access credit during that time, though your ability to get credit typically improves as the record ages and your history of on-time payments builds up.
What happens if I miss payments in a DAS?
Missing a payment could lead to your DAS being revoked, after which creditors may take legal action to recover the debt. If you’re struggling, contact your Money Adviser as early as possible, they may be able to adjust your payments or arrange a payment break.
Can I apply for a Debt Arrangement Scheme if I'm self-employed?
Yes, self-employed people can apply for a DAS. Your income and business expenses will be assessed to work out an affordable monthly payment.
Can I add new debts to my DAS once it's set up?
No, you can’t add new debts once your DAS is in place. If you take on additional debt afterward, you’ll need to manage it separately or speak to your Money Adviser about your options.
What happens if my financial situation changes during my DAS?
Contact your Money Adviser, who can adjust your monthly payments based on updated financial information. You may also be able to apply for a payment break of up to 6 months if your disposable income drops significantly, or a short crisis payment break for a sudden emergency.
Will creditors contact me during my DAS?
No, once your DAS is approved, creditors are prohibited from contacting you directly about the debts included. They must go through your Money Adviser instead, protecting you from direct contact.
Can my DAS be revoked?
Yes, if you fail to meet the terms of your agreement, such as missing payments without reasonable justification, your DAS could be revoked, and creditors may then take legal action to recover what’s owed.
Will I be protected from legal action during my DAS?
Yes, while your DAS is active and you’re keeping to its terms, creditors cannot take legal action against you, including wage arrestments, for the debts included in your arrangement.
Authorised and regulated by the Financial Conduct Authority
How Debt Advisory Services Can Help You.
Your Finances
We’ll take time to understand your situation and finances
Your Options
We’ll talk you through your options and help you make those important next steps once you are ready.
Your Journey
We’ll be with you from start to finish and we are committed to helping you get your life back.
Get Started.Tell us about your finances and we'll recommend a solution
Step 1 of 4
How much debt do you have ?
Find out if you qualifyPlease complete the form and find out how one of the most largest solution providers in the UK can help you:Find out if you qualifyPlease complete the form and find out how one of the most largest solution providers in the UK can help you:Freeze interest and chargesStop all creditor calls and lettersReduce your debt payments
Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
Let us help
Get started and find a solution with the help of an advisor.