The Scottish Debt Arrangement Scheme (DAS) is changing. 

From Monday 29th October 2018, new regulations will come into force making the remedy more attractive to people struggling with problem debts.

What is the Debt Arrangement Scheme?

The Debt Arrangement Scheme is unique in the UK, in that it is the only  formal repayment plan that allows people struggling with multiple debts to repay those debts over a period of time, without having to worry about interest, fees, charges or penalties.

It also protects those in debt payment programmes from having to worry about their wages being arrested or bank accounts being frozen and even prevents creditors from making them bankrupt.

Participants in programmes also benefit as they only need to make one payment per month, with a payment distributor then paying the individual creditors on their behalf.

So what is changing?

The changes that are being introduced are intended to make it easier for those applying , in the hope that more consumers will use it rather than debt remedies like bankruptcy.

The first of the changes will be it will no longer be necessary for applicants to offer all their disposable income  to pay their debts each month. So where someone’s income is £1,200 and they are spending £1,000 on their household bills, they will no longer have to offer the full £200 spare cash they have each month. 

It is hoped this will give the participants more financial breathing space over the duration of the plan and make missed payments less likely.

It will also no longer be necessary for people entering a Debt Payment Programme to include all their debts.  After the new changes they will be able to leave out rent and mortgage arrears and come to separate agreements with those creditors, possibly offering them more money than they would get if they were included into the Debt Arrangement Scheme.

Other changes will allow applicants to leave their name off the Debt Arrangement Scheme Register where they are at risk of violence. The Register is a publicly accessible register that all participants in the Debt Arrangement Scheme previously had to appear on.

Borrowing whilst in the Debt Arrangement Scheme

Debtors entering the Debt Arrangement Scheme will also after the 29th October 2018, still be able to borrow whilst in the scheme, up to £2,000 without having to tell those they are borrowing from that they are in the Scheme or seek permission of the Debt Arrangement Scheme Administrator.

Where they have already borrowed a £1,000 or more whilst in the Scheme, they will have to tell the creditors if they borrow any more.

For more information about the Debt Arrangement Scheme visit our Debt Arrangement Scheme Page.