The Debt Arrangement Scheme was established by the Debt Arrangement and Attachment (Scotland) Act 2002. Debtors who have multiple creditors can agree to a Debt Payment Programme (DPPs). Only approved advisors can set up these Programmes.
While the Programme is in operation, creditors cannot take legal action to recover the debt (diligence). Interest on the debt is frozen while the Programme is in operation and written-off when it is successfully completed.
Some people's debts are so large relative to their surplus income that there is no prospect of them being able to pay them off in a realistic timescale. A Debt Payment Programme is therefore not suitable for them. They may need to consider having the debt written off by making themselves bankrupt. People on low income with few assets can apply to the Accountant in Bankruptcy to be made bankrupt.
In 2005, the Scottish Government initiated a series of pilot projects, to test new ways of delivering money advice to groups which are particularly vulnerable to debt problems but which may have difficulty accessing mainstream services. This includes those entering or leaving employment, lone parents, young people, people with mental health problems or learning difficulties and prisoners. The research findings and full evaluation of these projects were published in 2007.