Debt Solutions in Scotland: DAS, Trust Deeds and Sequestration

Scotland runs its own statutory debt relief schemes, separate from Breathing Space, debt management plans, individual voluntary arrangements and bankruptcy in England and Wales. They are administered by a different statutory office, under different legislation, and several of the operative figures, such as debt thresholds, scheme duration and fees, are reviewed periodically. This page sets out what each scheme actually is and what it does. Where a figure changes on a regular cycle, it says so and points to where to check the current position rather than stating a number that may already be out of date.

Who runs Scotland's debt solutions

The Accountant in Bankruptcy, a Scottish Government agency, is the statutory administrator for Scotland's main debt relief routes. It acts as the "DAS Administrator" for the Debt Arrangement Scheme and also oversees sequestration, Scotland's equivalent of bankruptcy. This is a different structure from England and Wales, where the Insolvency Service performs a broadly similar function but under wholly separate legislation. If you want current eligibility criteria, fees or timescales for any of the schemes below, the Accountant in Bankruptcy and mygov.scot are the places to check them, because this page describes the shape of each scheme rather than every operative figure inside it.

The Debt Arrangement Scheme (DAS)

DAS is Scotland's statutory debt payment programme. Broadly, a debtor works with a money adviser to put together a Debt Payment Programme, a structured plan to repay debts over an agreed period, which is then approved through the DAS Administrator rather than through a court. Once a programme is in place, it is meant to give the debtor a single, manageable arrangement instead of dealing with each creditor separately.

The specific eligibility rules, such as which debts can be included and what counts as a reasonable programme length, are set out in the scheme's own regulations and are exactly the kind of detail worth confirming directly with a money adviser or the Accountant in Bankruptcy before relying on it, since this page does not repeat the operative eligibility text.

A DAS programme approved through the Administrator is a different thing from an informal payment arrangement a debtor agrees privately with individual creditors. An informal arrangement can be changed or ended by a creditor at any point and carries no statutory protection from diligence in the meantime. A DAS programme's whole purpose is to bring creditors into one approved plan rather than leaving each one free to act separately, which is the practical reason people use it instead of negotiating debt by debt.

The moratorium on diligence: DAS's strongest protection

Separately from an approved payment programme, Scotland has a moratorium on diligence, a temporary freeze that can be obtained while an application, such as a Debt Payment Programme, sequestration or a trust deed, is being considered. The Accountant in Bankruptcy describes its effect in plain terms: during the moratorium, a creditor cannot serve a charge for payment, cannot commence or execute any diligence, and cannot petition for sequestration.

That single protection covers most of what a Scottish debtor facing enforcement actually needs while a longer-term solution is being arranged: no charge for payment, no attachment, no earnings or bank arrestment, and no move towards sequestration. The moratorium runs for six months and, in the ordinary run of cases, only one is available in any 12-month period, so it is worth timing an application carefully rather than using it too early in a case that might need it more later. Applying while diligence is already close to being instructed is a common and sensible use of it.

Trust deeds

A trust deed is Scotland's insolvency-track alternative for someone who cannot realistically repay their debts in full but does not want, or does not qualify for, sequestration. In broad shape it is the Scottish counterpart to an individual voluntary arrangement in England and Wales: the debtor's affairs are placed under a trustee, usually an insolvency practitioner, who deals with creditors on the debtor's behalf.

The detailed rules, including how a trust deed becomes binding on creditors, its typical duration, and what it does to credit records, sit in Scotland's own insolvency legislation and were not independently confirmed for this page. Do not assume a trust deed works on the same timescale or terms as an English IVA. If a trust deed is being suggested to you, ask the firm proposing it, or a Citizens Advice Scotland or Money Advice Scotland adviser, to set out the current terms in writing before you agree to anything.

Sequestration

Sequestration is Scotland's equivalent of bankruptcy: a formal insolvency process that can write off qualifying debts in exchange for the debtor's assets and, usually, a contribution from income for a period. It is administered through the Accountant in Bankruptcy rather than a court in most routine cases, which is itself a structural difference from bankruptcy in England and Wales.

As with trust deeds, the specific entry routes, fees, duration and effect on credit records were not independently verified for this page and should not be assumed to mirror the English position. The Accountant in Bankruptcy publishes current guidance, and a money adviser can confirm whether sequestration or another route fits your circumstances before you apply.

Why this page will not give you every figure

Scotland's debt relief schemes, like their English counterparts, have thresholds and durations that are reviewed and changed from time to time. Rather than print a number that may already be wrong by the time you read this, this page names what each scheme does and points you towards the Accountant in Bankruptcy, mygov.scot, and free advice services for the figure that applies right now. That is a more reliable answer than a fixed number frozen at the date this page was written.

Why it is worth identifying the right scheme early

The three routes above are not simply different flavours of the same outcome. A moratorium is temporary and buys time; a Debt Payment Programme under DAS is a way of paying debts off in full over a longer period without further diligence; a trust deed and sequestration are both insolvency processes with lasting consequences for credit records and, in some circumstances, for a debtor's home. Confusing a temporary protection for a permanent solution, or the other way round, is a common and avoidable mistake, and it is one a money adviser can usually clear up in a single conversation once they see the actual figures involved.

What to do now

If diligence is imminent or already under way and you need breathing room, ask a money adviser about a moratorium application straight away, since its effect on charge for payment and diligence is immediate once granted. If you can realistically repay your debts over time, ask about a Debt Payment Programme under DAS. If repayment in full is not realistic, ask a money adviser or an insolvency practitioner to explain the current terms of a trust deed and sequestration side by side, including the effect each will have on your income, your home and your credit record, before you choose between them.