Debt Arrangement Scheme

Can a Debt Arrangement Scheme stop a council tax wage arrestment?

If council tax arrears have led to a wage arrestment, a Debt Arrangement Scheme (DAS) is one of the routes in Scotland that can bring it to a stop. This page explains how a DAS works for council tax debt and a wage arrestment in particular.

Once your Debt Payment Programme (DPP) is approved, an earnings arrestment that is already in place must stop, and your employer is told to stop taking money from your wages. From that point you make a single, affordable payment that is shared between the creditors included in your programme.

Watch: how a council tax wage arrestment works and how a DAS can stop it.

What is the Debt Arrangement Scheme?

The Debt Arrangement Scheme is a statutory debt-management scheme set up by the Scottish Government and administered by the Accountant in Bankruptcy. It lets you repay your debts in full through a single Debt Payment Programme at a rate you can afford, over as long as you need. While the programme runs, interest, fees and charges are frozen, and they are written off when it completes. You set a DAS up with the help of an approved money adviser. Importantly, a DAS is not an insolvency solution: you repay what you owe in full.

Can I include council tax arrears in a DAS?

Yes. Council tax arrears can be included in a Debt Payment Programme alongside your other debts, and dealt with through one single payment rather than separately by the council. There is no minimum level of debt, so you can include a single debt or several.

Debts that can usually be included alongside council tax arrears include:

• Credit cards, store cards and catalogue debts;
• Personal loans and overdrafts;
• Payday and short-term loans;
• Other council tax years and similar arrears.

Your current, ongoing council tax stays outside the programme, because it is a live household bill (more on that below). Your money adviser will confirm exactly what can and cannot be included in your situation.

Will a DAS stop and remove a council tax wage arrestment?

This is one of the main reasons people use a DAS. When you apply, there is protection from further enforcement action, and once your Debt Payment Programme is approved, an earnings arrestment that is already in place must stop, with your employer instructed to stop making deductions. A DAS is one of only two options, alongside a trust deed, that can remove a wage arrestment already in place, rather than only preventing a new one.

How a DAS works, step by step

• An approved money adviser reviews your income, spending and debts, and works out a single affordable payment.
• A Debt Payment Programme is proposed to your creditors through the DAS Administrator (the Accountant in Bankruptcy).
• Interest, fees and charges are frozen from the date you apply.
• Once the programme is approved, you make one regular payment that is shared between your creditors, and any existing wage arrestment stops.
• You keep paying until your debts are cleared in full, and the frozen interest and charges are then written off.

Do I still have to pay ongoing council tax?

Yes. A Debt Payment Programme covers the council tax arrears that have already built up. Your current, ongoing council tax is a live household bill, so you still need to keep paying it as normal to your council. Your money adviser will factor this into working out what you can afford towards the programme.

What does a DAS cost?

There is no separate, upfront fee for you to pay on top of your debts. Free money advice is available to set a DAS up, and the running of the scheme is funded from within the payments you make rather than charged to you extra. In other words, your single monthly payment is based on what you can genuinely afford.

Things to weigh up

A DAS is a helpful, protective option, but it is worth understanding the full picture:

• A DAS is recorded on the public DAS Register and can affect your credit file while the programme is running.
• You repay your debts in full, so it suits people who can afford to clear what they owe given time and frozen interest.
• You need to keep up the agreed payments for the programme to continue.
• If you cannot realistically repay in full, another route such as a trust deed may be more suitable.

Which options can stop or remove a council tax wage arrestment?

Debt Arrangement Scheme and council tax at a glance

Is a DAS the right option for council tax debt?

A DAS can be a strong fit if you can afford to repay what you owe but need time, protection from enforcement and interest frozen. Because there is no minimum debt and you repay in full, it suits people who want to clear council tax arrears, and any other debts, without a formal insolvency solution. If you could not realistically repay in full, a trust deed may be more suitable. The best way to find out is to talk it through with someone who understands Scottish council tax debt.

Compare the other options

Where to find free, impartial information

As well as speaking to us, you can read more about the Debt Arrangement Scheme and your rights from these independent, official sources:

• mygov.scot – Debt Arrangement Scheme (Scottish Government)
• Accountant in Bankruptcy (Scotland’s insolvency service and DAS administrator)
• National Debtline – Debt Arrangement Scheme (Scotland)
• Citizens Advice Scotland – The Debt Arrangement Scheme
• MoneyHelper – Dealing with debt (government-backed)

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