Debt Arrangement Scheme in Scotland: how a DPP works

The Debt Arrangement Scheme (DAS) is a statutory Scottish scheme. An approved money adviser can help an eligible person apply for a Debt Payment Programme (DPP), usually repaying included debts in full through affordable payments.

Who can use DAS?

You must meet the residence and other eligibility rules, and the proposed repayment plan must be sustainable and reasonable. An approved money adviser checks income, essential spending, debts and circumstances. Having some spare income does not guarantee approval or make DAS the best option.

How does a DPP work?

Payments go to an approved distributor, which allocates them to creditors. Relevant interest and charges are frozen from the application stage and are written off when the programme completes successfully. If an application is rejected or a programme is revoked, those charges may become payable again. See AiB’s overview.

What protection does it provide?

An approved DPP restricts specified enforcement for included debts, including diligence and creditor bankruptcy action. It does not prohibit all administrative contact or excuse new bills and obligations outside the programme. A DAS arrangement does not normally require selling your home, but you must keep up relevant ongoing secured payments; it is not a guarantee that no asset can ever be at risk.

Explore your debt options

Some formal debt solutions can write off eligible debts, but suitability depends on where you live, your debts, income and assets. Fees, restrictions and effects on your credit record may apply. Free, impartial debt advice is available from MoneyHelper. The enquiry form introduces you to our commercial partner; submitting it does not confirm that you qualify for any solution.

Which debts can be included?

The adviser identifies debts that must be included, optional arrears and excluded liabilities. Continuing payments such as current rent, mortgage instalments or child maintenance need separate treatment. Some arrears relating to continuing liabilities may be included; it is wrong to say child-maintenance arrears can never be considered. Student-loan rules are separate. Check the official application guidance rather than assuming every debt follows the same rule.

How long does it last?

The duration depends on the debts and affordable payment; there is no single standard term. The adviser must consider whether the proposal is reasonable and whether another solution is more suitable. A longer plan can mean living with credit restrictions for a considerable period.

What does it cost?

Under the current fee structure for new programmes, 22% is deducted from payments for administration and distribution, leaving creditors 78%. The statutory deductions are borne by creditors and are not an extra 22% added to the debtor’s scheduled payments. Confirm any proposed service charges and use free advice where available. See AiB’s fee guidance.

How are applications decided?

The approved adviser submits the proposal. Creditors normally have 21 days to respond; agreement or deemed agreement from creditors holding at least 90% of the debt can lead to approval. Other applications may be assessed under the fair-and-reasonable test. One creditor’s objection is not necessarily an automatic rejection.

After approval, the first payment must normally be made within 42 days. Your adviser explains the payment instructions and ongoing conditions. If the application is refused, ask promptly about review or appeal rights as well as alternative solutions; deadlines apply.

Can payments change or pause?

Tell the continuing money adviser promptly if circumstances change. A DPP can be varied; being legally binding does not mean its terms can never change. A six-month payment break may be available where disposable income falls by at least 50% and the relevant conditions are met. Short crisis breaks have separate rules.

A missed payment does not automatically terminate a DPP, but arrears or other breaches can lead to an application for revocation. Seek advice before the problem grows. Revocation can remove protection and allow interest and enforcement to resume. See AiB’s variation guidance.

Can I finish early?

Paying the remaining balance is one route. Early completion may also be possible with written agreement from all creditors, including an agreed reduced settlement. Separately, composition can be requested after at least 12 years where at least 70% of the debt has been paid, subject to the statutory process. It is not automatic debt forgiveness. See completion and composition guidance.

Can I borrow during a DPP?

Further borrowing is restricted, but there are specific exceptions and approval routes. It is not an absolute ban on every credit agreement. Ask the adviser before applying, including for a small loan or an essential purchase, so the relevant conditions can be checked.

Register and credit record

A DPP normally appears on the public DAS Register, with limited exceptions where personal safety is at risk. The register entry is removed on completion. That is different from credit-reference-agency information about the underlying accounts.

The arrangement and payment history can harm your ability to obtain credit. Defaults normally remain for six years from the default date; other account information may remain after closure. Do not assume that all credit effects disappear exactly six years after the DPP starts. Ask your adviser and check your reports for accuracy.

Where can I get advice?

Use an approved money adviser and ask about free services. Compare DAS with other Scottish options, including informal arrangements and insolvency, before committing. The right choice depends on income, assets, debts and personal circumstances.