The Debt Arrangement Scheme (DAS) in Scotland

DAS is not an insolvency and nothing is written off. What it changes is the pressure: interest, fees and charges stop, creditors cannot take action, and you make one affordable payment. It suits people who can clear their debts in a reasonable time if the interest stops. It is set up under the Debt Arrangement and Attachment (Scotland) Act 2002, and it is only available in Scotland. For the other Scottish options, see debt solutions in Scotland.

You can only apply through a DAS-approved money adviser, and they cannot charge you for setting up a DPP. Free, impartial advice is available from MoneyHelper, StepChange, Citizens Advice Scotland and National Debtline. See where to get free debt advice.

How does a Debt Payment Programme work?

Your money adviser works out what you can afford with the Common Financial Tool, the method all Scottish advisers and trustees use. You pay that amount to a payments distributor, which may be the adviser’s organisation, and it pays your creditors. You repay what you owe over a “reasonable” time, based on how much you owe and what you can afford.

Once your programme is approved, creditors cannot:

• ask you for money
• take you to court
• apply to make you bankrupt
• add interest, fees or charges.

Interest, fees and charges are frozen from the date you apply. If you complete the programme, you cannot be asked to pay any interest or charges that would have built up after the application date.

Who pays the fees?

Your creditors do. A 2% AiB fee and a 20% payments distributor fee come out of what you pay, so creditors receive 78% of the debt for applications made from 4 November 2019. You still repay the full amount you owe.

There is no fixed maximum length. Citizens Advice says that, as a general rule, more than 10 years is unlikely to be reasonable unless all your creditors are happy with it.

Who can apply for DAS?

There is no minimum debt. You must:

• live in Scotland
• owe money to one or more creditors
• have disposable income left after essential living costs
• be able to repay what you owe in a reasonable time.

You cannot apply if you have a protected trust deed, are bankrupt, have a bankruptcy restrictions order, or have only one debt and a court has already given you extra time to pay it.

Which debts can go into a DPP?

You can include existing debts such as overdrafts, credit cards, buy now pay later, payday and personal loans, and arrears of utilities, council tax, rent or mortgage. With rent and mortgage arrears you can choose whether to include them.

You cannot include student loans, court fines, or hire purchase and conditional sale agreements (only arrears on them). Ongoing bills, such as current council tax, energy, rent and mortgage payments, are paid as normal alongside the programme.

How do you apply, and how do creditors decide?

Your money adviser prepares the application and contacts your creditors to agree the terms. Your details go on the public DAS Register, which shows who you are and who your adviser is, but not your debts.

AiB’s guidance for creditors sets out how the decision works:

• Creditors have 21 days to respond. A creditor that does not respond is treated as agreeing, unless the DPP is for a single debt.
• If at least 90% by value of creditors agree, or are treated as agreeing, AiB approves the programme automatically.
• If more than 10% by value have not agreed, AiB decides whether the proposal is “fair and reasonable”, and must approve it if it is.

Once approved, the payments distributor contacts you, and you must make the first payment within 42 days.

If creditors are already taking action before you apply, ask your adviser about a moratorium, which gives 6 months of protection from enforcement and can be used once every 12 months.

What if your circumstances change?

Report any change to your money adviser or AiB within one week, for example lower income, higher costs, a new baby, a separation or a health problem. The scheme has some flexibility built in:

• a one-month crisis break, which your adviser needs to approve
• a payment break of up to 6 months if your disposable income falls by 50% or more
• a variation to change your payment. Creditors have three weeks to respond, and if some disagree, AiB has the final say.

Your DAS is extended by the length of any payment break you take.

Can you borrow money during DAS?

You do not need AiB’s approval to apply for credit of up to £2,000. Above £2,000, you must get AiB’s approval before you apply, and tell the lender in writing that you have a DAS. The exceptions, where you do not need approval first, are certain emergency costs:

• emergency repairs to keep your home wind and watertight
• car repairs you need to get to work
• essential repairs to household appliances
• funeral costs for a close family member.

AiB could cancel your DAS if you apply for credit over £2,000 without approval.

How does DAS compare with a debt management plan or a trust deed?

A DPP is often described as Scotland’s version of a debt management plan, but it is stronger because it is legally binding.

A Protected Trust Deed usually lasts 4 years and writes off what is left, but it is a formal insolvency with fees and can affect your home. DAS can take longer because you repay everything, but it is not an insolvency and your assets are not handed to a trustee. If you cannot afford regular payments at all, an adviser may talk to you about sequestration instead. The right choice depends on your figures, so ask an adviser to compare them.

What to do next

1. Make a list of everyone you owe and roughly how much, plus your income and essential bills.
2. Contact a free money adviser and ask whether they are DAS-approved. The DAS pages on mygov.scot explain the scheme in more detail.
3. Keep paying priority bills such as rent, mortgage and council tax while the application goes through.

An independent review of Scotland’s statutory debt solutions reported in March 2026 and the Scottish Government had not responded by September 2026, so the rules could change. For the options in England and Wales, see debt solutions compared.