Business Debt Arrangement Scheme
From 11 December 2014, the existing Debt Arrangement Scheme (DAS) regulations which allow individuals and sole traders some breathing space from creditors are being extended to other forms of business From that date, partnerships, trusts and small to medium unincorporated businesses can apply for Debt Payment Programmes under the Debt Arrangement Scheme.
These measures are intended to allow small and medium businesses in Scotland continue to trade while dealing with debts and prevent unnecessary insolvency situations.
There are a number of differences with a Business DAS as against an individual application. These include:
- The DAS Money Adviser must be an Insolvency Practitioner
- A declaration of business viability must be completed at the time of the application and every 12 months thereafter.
- All business DAS Programmes must be completed within 5 years.
Further details can be found at the AIB site
Further information about the scheme can be found at the
It took some time for a significant uptake of the scheme by individuals and that may again be the case with the Business DAS. The requirement to have an Insolvency Practitioner involved and the fact there can be no composition may prove barriers but only time will tell.