What is a Debt Arrangement Scheme?
As a legally-binding agreement, administered by the Accountant in Bankruptcy (AiB), the Debt Arrangement Scheme (DAS) helps people repay debts through an agreed, monthly payment. It also stops creditors taking legal action against you. CAP can help you arrange a payment plan through the Debt Arrangement Scheme.
Please note, this option is only available to people 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 expenditure (the money you need to spend to cover living costs). 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 payment will therefore also include payments towards your priority and non-priority debts. These payments will be arranged depending on what you can afford.
As part of the formal offer of payment, creditors are required to stop any further interest and charges on your debts (as long as you follow the agreed terms of DAS throughout the payment plan).
We’ll also give you an estimate of how long it may take to repay your debts. This is what we call your repayment term. Please note, the time it takes to become debt free may increase or decrease depending on if your situation changes.
2. Setting up your DAS payment plan
We’ll then apply to DAS on your behalf. 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, the proposed payment plan
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 regular payment
In most instances, DAS requires an agreed, monthly payment. This is managed by an approved payment distributor, allocated to your plan through the DAS administration process.
4. Change of circumstance
If your financial situation changes, you must let us know, as CAP continues to act as your Money Adviser throughout the process. If necessary, we’ll assess and discuss directly with you any possible amendments to your Debt Payment Plan.
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 may take, as it depends on your individual circumstances.