Debt Arrangement Scheme.
Debt solution in Scotland
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
Debt Arrangement Scheme.
Debt solution in Scotland
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
Honesty and Integrity
We make a difference
How can a Debt Arrangement Scheme (DAS) 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.
How does it work?
We look at your living costs and bills to see what money you have left over for debts. We will check this information with you.
You make regular payments to us, which we then share between the people you owe money to. We recommend a monthly direct debit, however there are other payment options. Please discuss these with us, if a direct debit is not suitable.
In your application, you can choose how much you want to pay toward your debts. However, your creditors will be able to see this and the amount you have left in your budget.
We are authorised to set up DPPs. You can contact an advisor for more information. By law, the people you owe money to must stop adding interest and charges when they receive your DPP proposal.
How does an IVA work?
In your application, you can choose how much you want to pay toward your debts. However, your creditors will be able to see this and the amount you have left in your budget.
We are authorised to set up DPPs. You can contact an advisor for more information. By law, the people you owe money to must stop adding interest and charges when they receive your DPP proposal.
How does it work?
We look at your living costs and bills to see what money you have left over for debts. We will check this information with you.
You make regular payments towards the DPP, which are then shared between the people you owe money to.
In your application, you can choose how much you want to pay toward your debts. However, your creditors will be able to see this and the amount you have left in your budget.
We are authorised to set up and manage DPPs. You can contact an advisor for more information. By law, the people you owe money to must stop adding interest and charges when your DPP is approved.
"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
Debt Arrangement Scheme FAQ.
IVA is a formal solution
What is a Debt Arrangement Scheme (DAS)?
The DAS is a debt management solution in Scotland that allows you to 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, and after completing the arrangement, any remaining debt may be written off.
How long does a Debt Arrangement Scheme last?
The length of a DAS depends on how much you owe and the amount you can afford to pay. It typically lasts up to 10 years, but you can pay off your debts faster if your financial situation improves.
What happens if I miss payments in a DAS?
Missing a payment could lead to your DAS being revoked, and creditors may then take legal action to recover the debt. It’s important to inform your Money Adviser if you face financial difficulties to avoid this.
Can I apply for a Debt Arrangement Scheme if I’m self-employed?
Yes, self-employed individuals can apply for a DAS. The DAS will assess your income and business expenses to determine an affordable monthly payment.
Eligibility criteria for the Debt Arrangement Scheme (DAS).
Residency:
You must be living in Scotland to apply for the DAS.
Unsecured Debt:
DAS is available for people with at least one unsecured debt (e.g., credit cards, loans, or payday loans). There is no minimum debt amount, but you must be able to demonstrate that you cannot manage your payments.
Affordability:
You must show that you have enough income to make regular payments towards your debts, while still being able to cover essential living expenses.
Arrears on Debt:
You must be in arrears or struggling to keep up with debt payments, but you need not be at risk of legal action. The DAS is for individuals who need help managing their debts.
Not in a Bankruptcy or Sequestration:
You cannot be in an active bankruptcy or sequestration process while applying for DAS, as these are separate debt solutions.
Willingness to Cooperate:
You must be willing to work with a Money Adviser to create a repayment plan, and you should be committed to sticking to the agreed monthly payments for the duration of the scheme.
Here are some typical examples.
Individual Voluntary Arrangement Example
Example case completed in 2024
Repayment calculated using income and expenditure data. Monthly payments and write off percentages are based on individual circumstances.
IVA is typically for a period of 60 months, depending on your homeowner status
Nominees fees £1,900 & Supervisors fees £1,750 = total fees £3,650, this amount is deducted from the repayment amount over the 5 year period
Authorised and regulated by the Financial Conduct Authority
More than a Debt Management Company
At Debt Advisory Services, we are your partners in achieving financial stability, committed to providing 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.
Debt Arrangement Scheme Fees.
There are three elements which make up DAS fees, although it should be noted that these are not paid on top of your debt. The level of your debt is the maximum amount you will pay under DAS with the fees being deducted from what your creditors receive.
Continuing Provider Fee:
Your Continuing Money Advisor will receive 15% of any payments you make towards your approved debt payment programme.
Payment Distributor Fee:
A payment distributor appointed upon approval of your DPP will be responsible for collecting and distributing your payments. They will receive 5% of any payments towards your approved debt payment programme.
DAS Administrator Fee
The DAS Administrator is the government body responsible for overseeing the Debt Arrangement Scheme and they will receive 2% of any payments you make towards your approved debt payment programme.
Given the above your creditors will receive 78% of what is owed to them should you complete an approved DPP and are required to write off the remainder.
Advantages of the Debt Arrangement Scheme
The advantages of the Debt Arrangement Scheme (DAS) are:
You won't have to sell your belongings or property such as your home or your car (also called assets). But you can decide to sell your home if you want to - this might mean you could pay off your debts more quickly than by making regular monthly payments
No more enforcement action – upon approval of your DPP creditors can no longer take steps to recover the money owed to them, for example they can no longer seek earnings or bank account arrestments.
Interest and debt charges are suspended during the DPP and then cancelled when it's complete. This means that you will have cleared your debts by the end of your DPP
Employment – if you set up a DPP, this won't prevent you from working in certain jobs or taking up public office. Some other debt options, such as trust deeds or bankruptcy do restrict the kind of work you can do.
Disadvantages of the Debt Arrangement Scheme (DAS)
The disadvantages of the Debt Arrangement Scheme (DAS) are:
Long-Term Contributions: You may need to make regular payments for a long period to fully repay your debts. This could take longer compared to other solutions like trust deeds or bankruptcy, which may offer a quicker discharge, though they come with their own consequences.
Impact on Credit Rating: Your credit rating will be negatively affected for the duration of the Debt Payment Programme (DPP). This can make it harder to secure new credit, such as loans or mortgages, in the future.
Limited Borrowing Ability: During your DPP, there will be strict limitations on borrowing, making it difficult, if not impossible, to access additional credit.
Risk to Your Home: If you have mortgage or rent arrears, setting up a DPP doesn’t prevent your lender or landlord from taking legal action to reclaim possession of your home. However, you may be able to negotiate with them, showing that you are actively addressing your arrears through the DPP.
Debt Arrangement Scheme FAQ Continued.
What types of debt can be included in a DAS?
DAS can include unsecured debts such as credit cards, personal loans, payday loans, and overdrafts. However, secured debts like mortgages and car loans cannot be included, although you may still need to continue making payments on these.
Can I add new debts to my DAS?
No, you cannot add new debts to your DAS once it is in place. Should, if you incur additional debts after your DAS is set up, you will need to consider other options, such as updating your payment plan or seeking further advice.
What happens if my financial situation changes during the DAS?
If your income or expenses change, you can contact your Money Adviser to adjust your monthly payments accordingly. This may involve submitting new financial information for review.
Will creditors be able to contact me during a DAS?
Once your DAS is approved, creditors are prohibited from contacting you directly about the debts included in the scheme. They must communicate through your continuing Money Adviser, providing you with protection from harassment.
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 the debt.
Will I be protected from legal action during a DAS?
Yes, while you’re in a DAS, legal action from creditors is frozen. This means creditors cannot pursue court action, including commencing or continuing wage arrestments, if you comply with the terms of your payment plan.
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.