Scotland—the Debt Arrangement Scheme

Produced in partnership with James Lloyd of Harper Macleod LLP and Stephanie Carr of Thorntons Law LLP

Practice notes

Scotland—the Debt Arrangement Scheme

Produced in partnership with James Lloyd of Harper Macleod LLP and Stephanie Carr of Thorntons Law LLP

Practice notes

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The Debt Arrangement Scheme (DAS) is a Statutory scheme that is designed to allow certain categories of debtor to repay their debts over an extended period of time by means of a debt payment programme (DPP). During the period a DPP is in force, a debtor is protected from enforcement action being taken against them by creditors. For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions.

The statutory basis of the DAS is found in Part 1 of the Debt Arrangement and Attachments (Scotland) Act 2002 (DAA(S)A 2002). However, this merely provides the framework within which the scheme is to operate. The actual detail is to be found in secondary legislation promulgated under DAA(S)A 2002. Principally, this is the Debt Arrangement Scheme (Scotland) Regulations 2011 (DAS(S)R 2011), SSI 2011/141 as amended by the Debt Arrangement Scheme (Scotland) Amendment Regulations 2014 (DAS(S)AR 2014), SSI 2014/294 (Further amendments were made by the Debt Arrangement Scheme (Scotland) Regulations

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James Lloyd

Harper Macleod LLP

James heads the firm's Insolvency team and has advised on corporate and personal insolvency related matters for a number of years. He advises creditors, banks and insolvency practitioners on all aspects of insolvency litigation.

Chambers UK Guide to the Legal Profession lists James as a "Leader in the Field" in both Restructuring/Insolvency and Personal Insolvency, where he is noted for having a strong reputation in the market, his clients appreciate his ability to "do an extremely good job under difficult circumstances." Sources note "He's good. He tells you as it is."

James has been recognised as a "World Leader" in commercial litigation by Who's Who Legal.

James is a member of the team that won the prestigious "Insolvency Team of the Year" award at the Law Awards of Scotland 2012.

Stephanie Carr

Solicitor / Partner, Thorntons Law LLP

Stephanie joined Thorntons Law LLP as a Partner in 2023. She has over 18 years' experience acting for a variety of clients in a wide range of contentious personal and corporate insolvency cases, as a result of which she has been accredited, and re-accredited, as a specialist in Insolvency Law by the Law Society of Scotland.

She is well known and respected in insolvency circles. She passed the Joint Insolvency Examination Board ("JIEB") exams in liquidation and personal insolvency and has a wide breadth of knowledge as a result of having attended the modules for the exams, where she also obtained a better understanding of the practical workings of the insolvency processes.

She also regularly acts for clients in both secured and unsecured debt recovery matters and advises on a number of diligence measures open to them. Stephanie has advised and represented clients in a wide range of disputes in the Sheriff Court, the Court of Session and tribunals. She has been the principal adviser to clients including government bodies, companies of all sizes and their directors, private and registered social landlords, individuals, insolvency practitioners, creditors and financial institutions.

Stephanie is ranked as an individual in Chambers and Partners UK for Insolvency/Restructuring with the commentary that she has "a deep and extensive knowledge of the full span of restructuring matters, including insolvency related litigation, advising Directors on their duties and corporate restructuring".

Jurisdiction(s):

United Kingdom

Key definition:

Sequestration definition

What does Sequestration mean?

The Scottish term for the bankruptcy of an insolvent estate of an individual or partnership. Technically, it is a person's estate which is sequestrated or set aside for the use of his creditors.

Scotland—the Debt Arrangement Scheme

Produced in partnership with James Lloyd of Harper Macleod LLP and Stephanie Carr of Thorntons Law LLP