An IVA may not be suitable in all circumstances.

Fees apply to the service, click here for more details. Your credit rating may be affected. Read more about IVAs here.

Debt alerts on a phone

What is the Debt Arrangement Scheme?

The Debt Arrangement Scheme was introduced by the Scottish Government to help people affordably resolve their debts. Those signing up to the scheme pay regular monthly fees into a debt payment programme. In turn, this money is divided up and sent to creditors. Here, we’ve detailed just about everything you need to know about the scheme.

2022 Feefo Trusted Service Award.
Graphic lines Graphic element

What is the Debt Arrangement Scheme?

Similar to Trust Deeds, the Debt Arrangement Scheme (DAS) is only available to residents of Scotland. Those residing in other parts of the country may wish to investigate solutions such as an IVA.

Under the scheme, as well as making payments to your lenders, interest rates are frozen and these groups are prevented from taking legal action against you. Although we cannot assist in the setting up of the Debt Arrangement Scheme, we can advise you on how to best get on top of your finances.

Would I qualify for the scheme?

To qualify for the Debt Arrangement Scheme, you should have more than one creditor and live in Scotland. Furthermore, you:

  • After meeting basic obligations, should have enough disposable income to make monthly payments.
  • Have sought the services of a DAS-approved advisor to set up the scheme.

However, if you are already undergoing a form of insolvency – such as Bankruptcy or protected Trust Deed – you would not be eligible for the service.

Is DAS the right option for me?

A Debt Arrangement Scheme has several advantages over other financial solutions. For example, a DAS generally allows you greater control of your assets. This means, in many cases, you won’t need to sell your home or car.

Furthermore, as interest rates and charges are frozen during the scheme, your debts should be cleared once the DAS ends.

What differs between individuals, however, is the length of the policy. As it allows you to clear your debts in a “reasonable time”, the advisor in charge of implementing the scheme will identify how long this should be.

Once the time frame has been agreed, affordable monthly fees will need to be paid. Yet, if this is temporarily affected – such as in the case of redundancy – you can apply for a payment break to compensate.

What other options are available?

The Debt Arrangement Scheme is just one solution for regaining control of your finances. As this must be set up by a qualified professional, you will need to get expert advice before proceeding with your application.

Contact us and we’ll be happy to discuss your circumstances. With no obligation on your part, we can evaluate your financial situation and recommend a solution which is right for you. To start getting on top of your debts, contact us through the button below:

See if I qualify
Graphic lines Graphic lines

Why people choose us

Get your life back.
  • 15+ years’ experience across our companies in dealing with debt.
  • Helped 20,601* people start their journey towards financial freedom.
  • On average, we help to write off £10,600** per client.
  • 100 staff members are here and ready to support you.
  • Rated 4.9 out of 5*** on Feefo.

* As of 10/02/22 20,601 of our customers were in an active IVA. ** Average unsecured debt anticipated to be written off for IVAs approved between 1 January 2021 and 31 December 2021 for FSS customers is £10,645.20, based upon successful completion. *** Based on independent verified reviews from Feefo.

Graphic lines Graphic element

Debt Arrangement Scheme FAQs

The Debt Arrangement Scheme will have a negative impact on your credit report. Although your score may be low already, details of the scheme will be active on your file for at least six years from the date this is agreed.

During this time, you are likely to find it hard to obtain loans or other financial products.

There are several advantages to the Debt Arrangement Scheme. For example:

  • Interest and charges are frozen while the scheme is active;
  • Creditors are prevented from taking legal action against you
  • Your assets are protected

There are several disadvantages to the Debt Arrangement Scheme. For example:

  • You’ll have to budget carefully to ensure payments continue to be made to the scheme;
  • Your credit rating will be negatively affected;
  • You are likely to find it very hard to obtain more or lines of credit while the scheme is active

There is no definitive end date for the Debt Arrangement Scheme and, ultimately, it ends when your creditors are paid. Generally, you should expect it to last for no longer than 10 years.

Apply for debt help