Since the reform of the debt arrangement scheme (DAS) in 2011, over £200 million of debt has been repaid. 

DAS is a key component of the Scottish debt management system, providing an effective statutory alternative to insolvency or debt consolidation. Through DAS, debtors pay their debts in full, with over 6,000 people having now successfully completed a DAS debt payment programme (DPP).

Creditors receive at least 90 pence in the pound, with the remaining 10 pence covering the costs of administering the scheme. Over the past five years, DAS has repaid more to creditors than either of the formal insolvency solutions, protected trust deeds (PTDs) and bankruptcies (Source: Debt Arrangement Scheme (DAS): The Way Forward [pdf]).

Minister for Business, Innovation and Energy, Paul Wheelhouse, also announced improvements to DAS which seek to make the scheme more of an appealing product to those in Scotland who are struggling with problem debt.

Head of StepChange Scotland, Sharon Bell, said: “We welcome the announcements today. Scotland is pioneering responsible debt repayment programmes that give people with problem debt a fair chance to repay.

“The Debt Arrangement Scheme offers our clients an opportunity to regain control of their finances and provides breathing space protections from unfair charges, harassment or repossession, which lead the way in the UK."

In the future, to strike the right balance of fairness to both creditors and debtors, debtors will be able to choose the level of payment they offer to the scheme, and creditors will be able to consider this sum when choosing to accept or reject the proposal.

Read more: AiB

See also

How should I deal with a county court judgement for debt?