Setting up a Debt Arrangement Scheme with CAP

All you need to know about setting up a DAS with CAP. 

CAP can help you apply for a Debt Payment Plan (DPP) under a DAS. This scheme is a legally binding agreement set up by the Scottish Government, allowing you to repay your debts with a single monthly payment. It also stops creditors from taking further action against you.

Please note, this option is only available to those living in Scotland.

How do I set up a DAS?

1. Working out a budget

When we prepare a budget for you, we start by looking at your income and then your expenditure (this is the money you need to spend to cover your living costs). On the Debt Arrangement Scheme (DAS), your budget will include essential payments like rent or mortgage, utility bills, living expenses and leisure.

Once your living costs are covered, we’ll work out what you have spare to offer your creditors. Your DAS will therefore also include payments towards your priority and non-priority debts. These payments will be arranged depending on what you can afford and following negotiations with your creditors.

As part of the formal agreement made with your creditors, they’ll also have to stop interest and charges towards your debts.

We’ll also give you an estimate of how long it will take to repay your debts. This is what we call your repayment term — please bear in mind this can change if your situation changes.

2. Setting up your DAS

We’ll then apply for your DAS for you. This whole process is done via an external organisation’s website, outside of CAP. It’s down to the DAS administrator (a civil servant appointed by the Scottish Government) to approve, or reject, your DAS.

The DAS proposal will be sent to all your creditors, and they have 21 days to let us know if they have any issues. If not, or if the Accountant in Bankruptcy (AiB) deems it fair despite creditors’ objections, the Debt Payment Plan (DPP) will be approved.

3. Making your regular payment

Part of the DAS includes making one pre-agreed regular payment to your Debt Payment Plan (DPP) each month. This is managed by an approved money advisor (external to CAP) and will then be distributed between your creditors.

4. If your financial situation changes

If your financial situation changes in any way, you must let CAP know. We’ll assess if your Debt Payment Plan (DPP) can be altered.

5. Debt free

This is what we are all aiming for through your DAS – you becoming debt free! There is no set limit on how long this will take, as it depends on your individual circumstances.

Questions

A DAS will affect your credit score, although it’s likely that being in arrears is already damaging your credit report. A DAS could affect your ability to take out further credit during this time and in the six years that follow.

When you’re in the process of a DAS, your name will be added to the public domain and shared with credit reference agencies. It’s unlikely that anyone but your creditors or lenders will check this, but it is public.

The DAS itself lasts as long as it’s been agreed that you’ll be repaying your debts. The record of your DAS will stay on your Credit Reference Files for six years after completion.

Go back to other potential routes out of debt