A Debt Arrangement Scheme (DAS) is an alternative option to formal insolvency that was introduced by the Scottish Government in November 2004.

Under a DAS, a debtor commits to a debt payment programme (DPP) which allows them to repay their debts based on their disposable income.

A debtor must seek advice and assistance from a money advisor before applying for a DPP under DAS. A DPP can last for any reasonable length of time, depending on the amount of debt and how much the debtor can pay. Creditors will receive regular payments towards the debt(s) owed to them under the terms agreed. 

When the money adviser submits the application to creditors for approval, all interest, fees, penalties and other charges are frozen (provided that the application is approved). Debtors are also protected from creditors taking any action against them to recover their debt.

The DAS is recorded on the DAS register which is a public record and there are strict limits on the amount and type of credit you can obtain whilst in a DAS.