Why was DAS introduced?

With high levels of debt increasingly hitting the headlines, the Scottish Government wanted to do something to help Scots with this problem. The Debtors (Scotland) Act 1987 had already introduced two forms of 'diligence stoppers’ (prevention of court action) - time to pay directions and time to pay orders.  However, these were only available from the courts and only applied to single debts.  They did not help people with more than one debt.  

In 2004 a third 'diligence stopper', the Debt Arrangement Scheme (DAS), was introduced.  It allowed individuals with two or more debts to get help without having to go through the courts.  DAS was introduced in 2002 by the Debt Arrangement and Attachment (Scotland) Act 2002 and brought into force in 2004 by the Debt Arrangement Scheme (Scotland) Regulations 2004.  

Following consultation with stakeholders, a number of amendments to DAS were introduced in 2007 through the Debt Arrangement Scheme Amendment (Scotland) Regulation 2007. The main changes introduced at this time were intimations (a declaration by the debtor that they intend to apply for a DAS) and the freezing of interest, fees, penalties and charges.  

The Debt Arrangement Scheme (Scotland) Regulations 2011 come into force on 1 July 2011, these regulations will consolidate existing DAS regulations, revoke all previous DAS regulations and introduce a number of changes.  The 2011 regulations introduce changes which allow debtors with a single debt or those who have granted a trust deed which has failed to become protected, to apply for DAS. They also enable couples who have at least one debt where they are jointly and severally liable, to apply for a joint DPP if their relationship falls within the following criteria:

• husband and wife or living together as husband and wife
• civil partners or
• living together in a relationship with the characteristics of a husband and wife relationship, except that they are of the same sex

Debtors in a DAS DPP will also able to apply for a payment holiday for a period of 6 months, with the period of the DPP extended for an equal period, where circumstances specified below have resulted in a reduction in the debtor’s disposable income of 50% or more.  The circumstances which for the purposes of a payment holiday are:

• a period of unemployment or change in employment or
• a period of leave from employment for maternity, paternity, adoption or to care for a dependant or
• a period of illness of the debtor or
• divorce, dissolution of civil partnership or separation from a person to whom the debtor is married or the civil partner or
• death of a person with whom the debtor shared care (financial responsibilities or otherwise)

• DAS regulations