Unsecured debts make up a huge burden on the debtor and also on the creditors. Here, the creditors can take up legal action if their loans are not recovered and as a result, the debtor can become bankrupt. The Scottish Debt Arrangement Scheme is a tool provided by the government in Scotland that gives security from bankruptcy.

The Scottish Debt Arrangement Scheme was first introduced in 2004 and in this scheme; the debtor gets a little more time to pay off the debt. As soon as the debts are paid off, the interest is frozen. The people who enter this scheme are usually sole traders and the application to this scheme can be done through a money advisor who is qualified in this. He looks after the matter if the candidate is suitable to apply to the scheme.

The debtor is provided with proper advice for debt management. In this scheme there are three more people involved other than the debtor and the debt advisor. They are the creditors, the DAS administrator and the payments distributor. The work of the payment distributor is to distribute the money among the creditors and the money is distributed in proportion to the size of debt.

In the Debt Arrangement Scheme, the debtor has a pivotal role. He maintains the payments he agreed to in the scheme. The debtor is protected from any court enforcement as long as the agreement under DAS lasts. The debtor is also protected from bankruptcy and loss of property. The advisor continues to provide advice on debt management and the DAS comes as a relief to the people who are facing debts but need more time to repay it.

There are many benefits the debtor gets under this scheme. There is no additional expense that the debtor has to bear once he has entered into the agreement. There are many advisors who are specialists in guiding the debtor throughout the deal. As per the insolvency of the practitioner, the creditors are given many debt arrangement options. The more the time, the longer it takes to be debt free. The DAS doesn’t come under any restriction until the period is over and the debts are repaid.

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