An IVA may not be suitable in all circumstances.
Fees apply to the service, click here for more details. Your credit rating may be affected. Read more about IVAs here.
The Debt Arrangement Scheme was introduced by the Scottish Government to help people affordably resolve their debts. Those signing up to the scheme pay regular monthly fees into a debt payment programme. In turn, this money is divided up and sent to creditors. Here, we’ve detailed just about everything you need to know about the scheme.
Similar to Trust Deeds, the Debt Arrangement Scheme (DAS) is only available to residents of Scotland. Those residing in other parts of the country may wish to investigate solutions such as an IVA.
Under the scheme, as well as making payments to your lenders, interest rates are frozen and these groups are prevented from taking legal action against you. Although we cannot assist in the setting up of the Debt Arrangement Scheme, we can advise you on how to best get on top of your finances.
The Debt Arrangement Scheme is only available in Scotland. If you’re based in other parts of the UK, this solution is not available for you.
To qualify for the Debt Arrangement Scheme, you should have more than one creditor and live in Scotland. Furthermore, you:
However, if you are already undergoing a form of insolvency – such as Bankruptcy or protected Trust Deed – you would not be eligible for the service.
A Debt Arrangement Scheme has several advantages over other financial solutions. For example, a DAS generally allows you greater control of your assets. This means, in many cases, you won’t need to sell your home or car.
Furthermore, as interest rates and charges are frozen during the scheme, your debts should be cleared once the DAS ends.
What differs between individuals, however, is the length of the policy. As it allows you to clear your debts in a “reasonable time”, the advisor in charge of implementing the scheme will identify how long this should be.
Once the time frame has been agreed, affordable monthly fees will need to be paid. Yet, if this is temporarily affected – such as in the case of redundancy – you can apply for a payment break to compensate.
Between April 2019 to June 2019, more than 700 Debt Arrangement Schemes were approved*.
*According to Wired Gov LTD, 'Scottish Insolvency Statistics: April to June 2019 (2019-20 Quarter 1)', July 2019.
The Debt Arrangement Scheme is just one solution for regaining control of your finances. As this must be set up by a qualified professional, you will need to get expert advice before proceeding with your application.
Contact us and we’ll be happy to discuss your circumstances. With no obligation on your part, we can evaluate your financial situation and recommend a solution which is right for you. To start getting on top of your debts, contact us through the button below:
See if I qualify
* As of 10/02/22 20,601 of our customers were in an active IVA. ** Average unsecured debt anticipated to be written off for IVAs approved between 1 January 2021 and 31 December 2021 for FSS customers is £10,645.20, based upon successful completion. *** Based on independent verified reviews from Feefo.
The Debt Arrangement Scheme will have a negative impact on your credit report. Although your score may be low already, details of the scheme will be active on your file for at least six years from the date this is agreed.
During this time, you are likely to find it hard to obtain loans or other financial products.
There are several advantages to the Debt Arrangement Scheme. For example:
There are several disadvantages to the Debt Arrangement Scheme. For example:
There is no definitive end date for the Debt Arrangement Scheme and, ultimately, it ends when your creditors are paid. Generally, you should expect it to last for no longer than 10 years.