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DAS 2011. The New Debt Arrangement Scheme. MATRICS would like to thank both the Scottish Government and the Accountant in Bankruptcy for their continued support and funding. Policy Objectives of DAS. Enable people to resolve serious debt problems in a dignified way;

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the new debt arrangement scheme

DAS 2011

The New

Debt Arrangement Scheme

MATRICS would like to thank both the Scottish Government and the Accountant in Bankruptcy for their continued support and funding

policy objectives of das
Policy Objectives of DAS
  • Enable people to resolve serious debt problems in a dignified way;
  • Reduce the need for creditors to take legal action to recover their debts;
  • Extend the benefit of money advice to those people who have a particular need for it;
  • Improve the quality of money advice, through training money advisers;


  • Minimise the impact of bad debt on both debtors and creditors.
need for reform
Need for Reform
  • Take up-lower than expected
  • Coverage across Scotland-not uniform
  • Post code lottery
  • Some areas-more chance of seeing Nessie
  • Creditor participation-very low


Working for those who can access it

Protects the debtor’s home

Protects against diligence

Powerful tool for money advisers

key changes overview
Key changes-Overview

New regulations SSI 2011 No 141 intend to:

  • Widen the Money Advice Gateway.
  • The DAS Administrator will take over the ongoing administration of DPPs from free sector money advisers.
  • New Computer system accessible by Money Advisers, creditors, payments distributers and the DAS Administrator
key changes overview1
Key Changes - Overview
  • Introduce a payment holiday of six months for debtors experiencing a reduction in disposable income by 50% or more.
  • Introduce Joint DPP for couples where they have a joint and several debt liable.
  • Introduce Single debt DPP but not appropriate when debtor paying under a Time to Pay Direction or Order or a Time Order.
key changes overview2
Key Changes - Overview
  • Debtor must make first payment under the DPP within 30 days of approval
  • Debtor must complete and submit tax or duty returns when due
  • DAS Administrator will automatically revoke a DPP if the debtor grants a trust deed and it becomes protected
  • Where Joint DPP revoked and debtor applies within 21 days for DPP in own name creditors cannot add interest, fees or charges – Reg 4 DAS (Fees) Regs 2011
the advice gateway
The Advice Gateway

More individuals can be approved to be DAS money advisers. These include:

  • Existing approved money advisers.
  • Qualified insolvency practitioners. an employee given authority by that insolvency practitioner.
  • A money adviser for an organisation which is accredited at Type 2 level or above against Scottish National Standards for Information and Advice Provision;
  • Advisers working for a citizens advice bureau
  • Local Authority money advisers
  • Under Reg 9 DAS regs 2011 DAS Admin satisfied fit and proper person to be a money adviser
the advice gateway contd
The Advice Gateway (contd)

Benefits of the proposed changes:

  • Debtors will continue to receive face to face advice.
  • Solution to the 'postcode lottery'.
  • More advisers can offer DAS.
  • Less administration for free sector advisers, meaning advisers are freed up, to see more clients.
  • Increased debt options for debtors
  • Holistic approach to debt solutions
the application process
The Application Process

The debtor:

  • Cannot apply for their own DPP
  • Can use the services of a private

or free sector Money Adviser

The money adviser:

  • Completes an application form which

is sent to the DAS Administrator (via the system).

  • A fee charging money adviser must inform the debtor that advice and access to DAS isfree elsewhere.

The DAS Administrator:

  • Records the application In the DAS Register (allowing protection earlier)
  • Submits the proposal to creditors (for freesector applications)

Free sector

Debtor advice

DAS application

Private sector

the das system
The DAS System
  • DAS Administrator will administer all free sector DPPs.
  • Private sector DPPs will be administered by the private sector money adviser
  • All DPP administration will be conducted on the DAS system
  • Creditors will log in to the system to consent or refuse proposals.
  • DAS Administrator will supervise the process and make F&R decisions where appropriate.
  • Notices will be generated from the system regardless of the party conducting administration.
  • A side project will be run to create a database of creditors
payment distribution
Payment Distribution
  • The regulations have changed so that AiB have to conduct a tender exercise to approve payments distributers
  • The DAS Administrator will charge an application fee which is 2% of sum distributed to creditors – collected by the payments distributers
approved payments distributers
Approved Payments Distributers


  • Appointed through open/transparent tender exercise
  • Better service-reduced costs to creditors
  • Charge a maximum of 8%
  • More competition through competitive tender for distributers.
  • Tendering contracts will ensure the best returns for creditors.
approved payments distributers1
Approved Payments Distributers

The AIB has awarded contracts to:

  • Carrington Dean,
  • Begbies Traynor,
  • MLM and
  • Gregory Pennington now Think Link

To be the payments distributers

debt arrangement scheme hub dash
Debt Arrangement Scheme Hub(DASH)
  • Dedicated web portal
  • Access to case management system
  • Able to check status of cases



The DASH Computer System


Free Sector


Private Sector




AIB/DA admin

in free sector

Self admin in

private sector







Proposals to creditors



Fair & Reasonable

Test applied


DPP approved



Distribution to creditors

DPP falls


Future help and support may be found at:

AIB Helplines:

Open from 9:30am to 4:30pm Monday to Friday. Tel:0300 200 2770

Fax:0300 200 2601


DAS Administrator Accountant in Bankruptcy 1 Pennyburn Road KilwinningAyrshire KA13 6SA


Money Advice Consultancy Service:

T: 0845 123 2326