Debt help schemes and solutions
Tailored, confidential debt advice.
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May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting MoneyHelper.
Formal Debt Help Schemes Scotland
Find out if a Debt Help Scheme can help clear your debts
A Debt Help Scheme in Scotland can support you if you’re struggling to repay debts you can’t afford. Depending on your circumstances, it may allow some debts to be written off and reduce the remainder to an affordable, manageable monthly payment, helping you regain financial stability and peace of mind.
How would a debt solution help?
A formal debt help scheme in Scotland
◾ Enables you to only pay what you can afford on a monthly basis.
◾ Freezes interest and charges.
◾ Reduces contact with the people you owe money to.
◾ May allow for some of your unaffordable debt to be written off, depending on your choice of debt solution
To see if a Debt Arrangement Scheme is right for you, we recommend seeking advice from an experienced debt adviser who can explain your options, including the pros and cons.
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Debt Arrangement Scheme
The Debt Arrangement Scheme (DAS) in Scotland is a statutory debt solution that helps people repay their debts through an affordable Debt Payment Programme (DPP) administered by a qualified money adviser and overseen by the Scottish Government.
It lets you make manageable repayments with legal protection from creditors while interest, fees and charges are frozen.
Get Help NowProtected Trust Deed
A Protected Trust Deed in Scotland is a formal, legally binding agreement between you and your creditors to repay your debts through affordable monthly contributions, usually over four years.
Once it becomes protected, creditors can’t pursue you for the included debts, and upon successful completion, the remaining amounts are written off at the end.
Get Help NowDebt Help Schemes – Sequestration in Scotland
Sequestration is Scotland’s legal form of bankruptcy and is designed as a debt help scheme for individuals who are no longer able to manage their financial commitments.
It is intended for people whose debts have become unmanageable and where alternative solutions are not realistic or sustainable.
Once sequestration begins, a trustee is appointed to take control of your financial affairs and communicate directly with your creditors.
Most unsecured debts can be included, and creditors are prevented from taking further enforcement action. During the process, the trustee will assess your income, assets, and overall financial position. If you have surplus income, you may be required to make contributions for a set period.
Where assets exist, these may be sold to help repay creditors, although essential items are protected.
Sequestration typically lasts between one to four year, after which you may be discharged, with qualifying debts written off.
While this can offer significant relief from financial pressure, it does have serious consequences, including an impact on your credit record and certain restrictions while the process is ongoing. Because of its long-term implications, sequestration should only be entered into after taking professional debt advice to ensure it is the most appropriate solution for your circumstances.
Minimal Asset Process Route to Sequestration
The Minimal Asset Process (MAP) is a simplified form of sequestration aimed at individuals on very low incomes who own little or nothing of value. It exists to ensure that people in severe financial difficulty can still access debt relief, even when they have no realistic ability to repay their debts.
To qualify, applicants must meet strict criteria relating to income, total debt levels, and asset values. Home ownership and high-value assets are not permitted, and vehicles and personal belongings must fall within set limits. MAP applications are made through an approved adviser and involve a shorter administration period than standard sequestration.
If your financial situation remains unchanged during the process, included unsecured debts are usually written off without the need for ongoing payments. While MAP offers a quicker and lower-cost route to debt relief, it still affects your credit rating and carries legal consequences. Specialist advice is essential before applying to ensure eligibility and suitability.
Essentially, a free government debt help scheme, with no setup fees, and with a potential discharge period of 6 months, it’s a way of clearing debt that allows you to put the past behind you, and start again financially.
Like all debt solutions in Scotland, Sequestration will impact your credit rating for a period of six years, and some ongoing work may be required to restore your credit in the long term.
Is this a free government debt help scheme to clear debt?
No, the Debt Arrangement Scheme (DAS) and Protected Trust Deed are not free government debt-clearing schemes, although they are government-regulated.
The Scottish Government oversees and legislates these solutions to ensure they operate within a strict legal framework and provide consumer protections. This regulation helps ensure fairness, transparency, and creditor compliance. However, this is where the government’s involvement ends. The government does not provide funding, does not manage cases, and does not clear debts on an individual’s behalf.
Importantly, DAS Scotland and Harper McDermott are not affiliated with the Scottish government in any way.
We are an employee-owned, FCA-authorised firm that helps individuals access and manage regulated debt solutions.
Any solution entered into with a company such as DAS Scotland or Harper McDermott will carry fees, as professional work is required to assess circumstances, liaise with creditors, administer payments, and ensure ongoing compliance. These fees are usually taken from agreed monthly payments rather than paid upfront.
For those seeking free, impartial debt advice, support is available from debt charities such as Advice Direct Scotland, Citizens Advice Scotland, StepChange, and Christians Against Poverty.
You can also find helpful information on how to contact these free debt solutions providers.
Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting MoneyHelper.
The expected debt write-off figure of up to 70% is based on 1,671 Protected Trust Deeds currently administered by Trust Deed Scotland® and protected between 1 January 2023 and 31 December 2023. The expected write-off percentage includes the costs of administering each Protected Trust Deed (PTD). More information relating to the costs of administration can be found by clicking here. In this sample of PTDs, the expected write-off figure reaches as high as 84%. 226 PTDs or 13.5% of the cases have an expected debt write-off percentage between 70% and 84%. The average (mean) expected write-off is 51%.
