Business Debt Arrangement Scheme

What is a Business Debt Arrangement Scheme (BDAS)?

A Business Debt Arrangement Scheme (BDAS) is a government backed process which helps non limited company entities repay their debts over an agreed period of time whilst continuing to trade. It is designed for partnerships, limited partnerships, trusts and non-corporate entities.

Limited companies and limited liability partnerships do not qualify for Business DAS. Sole traders would apply for a DAS (Debt Arrangement Scheme) given they operation as a sole owner non limited company entity.

What does it do?

A Debt Payment Plan (DPP) under the Business Debt Arrangement Scheme (BDAS) allows you to come to an arrangement with your business creditors (those your business owes money to) to pay them back in full in a reasonable timescale.  It is based on what the business can afford, not what the creditors demand. Dunedin Advisory are qualified money advisors able to help you put a Business Debt Arrangement Scheme (BDAS) in place. We work out what you can afford to pay every month and for how long you will need to make that payment.

What timescale is allowed to pay the debts?

A Business Debt Arrangement Scheme (BDAS) must by law run for no more than five years.

How much does the business pay?

Interest and charges are frozen at the time your Business Debt Arrangement Scheme (BDAS) is accepted. You only pay back the sum of your debts at that time. Dunedin Advisory can help you calculate the monthly payment you can afford and assess how you will manage other ongoing trading commitments.

Do you need to sell your business assets?

As you are paying your creditors in full, from your profits, you don’t need to include or sell your business assets – unless you choose to do so. There will be restrictions on the sale of non- trading assets during the life of the programme, unless the sale is for the benefit of creditors. You may have assets that are no longer essential to trade and these could readily be sold to pay all or a proportion of your debt.

How do my debts get paid?

Your debts are paid from the monthly contribution you make. Your creditors are paid on a regular basis. Legislation states creditors must receive at least 78% of the debt due to them. The reason they do not receive the 100% of the amount is the fees and charges payable to administer the scheme come from the funds that are ingathered. You do not pay any additional fees.

Can your creditors object?

Yes – they can. Creditors are allowed 21 days to advise if they accept or reject the terms of your scheme. Where a creditor doesn’t respond they are treated as having agreed. Where they object to the scheme, then the government office the AiB (Accountant in Bankruptcy) is required to assess whether the scheme can proceed or not. The AiB will consider whether it is deemed fair and reasonable or not. Where the AiB approve a scheme following a creditor objection, the creditor is bound by that decision.

How we help you

We will discuss your business plans with you and advise you if the Business Debt Arrangement Scheme (BDAS) is applicable and if you can meet all of the required criteria. Where you cannot meet the criteria, we will work with you to find other solutions.

Where you can proceed with a Business Debt Arrangement Scheme (BDAS) we will support you through the process as your Continuing Money Adviser. In a Business Debt Arrangement Scheme (BDAS) the Continuing Money Adviser (CMA) must be an Insolvency Practitioner which we are. We will assist you with your application; reviewing your financial position and contribution regularly; and ensuring that your Debt Payment Plan is completed. At all times we must be able to confirm to your creditors that your Business Debt Arrangement Scheme (BDAS) is viable.

You can find out more about Business DAS by going to

There is no substitute for detailed advice, tailored to your circumstances. Contact us and we will arrange to meet you, free of charge, for a discussion on what your options may be.