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    From the 1st April 2015, the Low Income Low Asset route to bankruptcy in Scotland is no longer available and has been replaced with the Minimal Asset Process (MAP) solution.

    The MAP bankruptcy exists to help a person resolve their unsecured debts which they cannot repay, as long as they meet the criteria. Generally to qualify, you must have a small amount of income and a low value in your assets.

    The MAP bankruptcy is cheaper than a certificate of sequestration application. You would need to speak to an approved money advisor who would complete the paperwork online for you. At the same time you would pay the MAP fee which is £90. This has been reduced to £50 until at least March 2021, due to the coronavirus.

    Qualify for a Minimal Asset Process (MAP)

    There is criteria to be applicable for a bankruptcy via the Minimal Asset Process route. To qualify you must:

    1. Live in Scotland. If you live elsewhere in the UK you could consider a Debt Relief Order.
    2. Your debts must not exceed £17,000 and must be at least £1,500. Until the end of March 2021, your debt can be as much as £25,000 or less. 
    3. You are living on a low income. If you’re income is solely state benefits then you will qualify for a MAP if you have been in receipt of these benefits for 6 months. You would also qualify if you have no available money to pay towards your creditors after paying your essential living costs.
    4. Your car must be worth £3,000 or less. Any other assets must not be valued at more than £2,000 in total, with a single asset not valued at more than £1,000.
    5. You cannot own a property.
    6. You cannot have been made bankrupt in the last 5 years.

    Minimal Asset Process Scotland

    Advantages Of MAP

    1. So long as you meet all the requirements, your debt will be written off after 6 months
    2. If you have no disposable income you will not be asked to make any payments towards your debt
    3. The creditors are no longer allowed to contact you regarding your debt, which can ease the stress and worry financial problems often cause
    4. The cost to enter sequestration via the MAP route is cheaper than a certificate of sequestration. 

    Disadvantages Of MAP

    1. You will be prevented from becoming a company director while you are in the debt solution and it may affect future job applications.
    2. The MAP will remain on your credit file for 6 years, making obtaining credit difficult. 
    3. Courts could impose a restriction order which extends the process for up to 15 years, if you don’t abide by the conditions of the MAP. 
    4. If your financial circumstances improve after you have entered the MAP, the insolvency practitioner may ask you to enter certificate of sequestration and make regular payments.

    Advice on Minimal Asset Process Bankruptcy

    You can seek advice on a Minimal Asset Process bankruptcy from Debt Support Trust on 0800 085 0226. Our debt advisors will explain whether you qualify for the solution and how you can proceed to enter the MAP bankruptcy.

    Advice and Support For Debt

    You can call to speak to a debt adviser about debt on 0800 085 0226 or complete our enquiry form below and we’ll give you a call back.

    We’re here to listen and provide support.

    MAP Bankruptcy Examples

    Minimal Asset Process FAQs

    Would A MAP Be Right For Me?

    As long as your debts are between £1,500 and £17,000, then it may be a good solution for you. Until March 2021, the maximum debt level has risen to £25,000.

    I Live In The UK, Can I Apply For A MAP?

    You are only eligible to enter the minimal asset process if you live in Scotland.

    How Long Does The MAP Last For?

    If you adhere to the requires then after 6 months any unsecured debt is written off.

    Is MAP Cheaper Than Sequestration?

    Yes, it costs £90, compared t0 £200 for sequestration. Until March 2021 it only costs £50 to enter a minimal asset process. 

    Will My Credit File Be Affected?

    Yes, any defaults on you credit file, including a MAP which is a form of bankruptcy, will last for 6 years.

    What Debt Can Be Included In A MAP?

    The majority of unsecured debts can be included in a MAP, such as: 

    • Utility Bills
    • Payday loans
    • Credit cards
    • Overdrafts
    • Bank loans
    • Store cards / catalogues 
    What Debt Cannot Be Included In A MAP?

    Any secured or fraudulent debts, student loans or court fines cannot be included into the minimal asset process. 

    Do I Have To Declare Any Assets?

    MAP is a form of bankruptcy, any assets you do have may be taken and sold in order to raise funds for your debts. 

    What If I Buy Something After Being Discharged From The MAP

    Your trustee will be able to sell any assets you have within 4 years of being discharged, in order to pay your creditors.

    Lynne, 35 years old, Fife
    Lynne first contacted Debt Support Trust in June 2020, she had found herself facing severe financial difficulties. She was very upset on the first call and unsure which way to turn. However, our debt advisor reassured her and stressed that she was not alone, explaining that there would be an answer to resolve her financial problems and no matter how bad she felt at the moment, things would get better.
     
    Due to the recent changes to the guidelines, after assessing Lynne’s situation it was decided that the minimal asset process would be the best advice. Her debt level was £21,000 and although the guidelines before coronavirus would have meant she wouldn’t have been applicable, new changes which raised the maximum level of debt from £17,000 to £25,000 (Until end of March 2021) allowed her to enter the solution. Lynne had no disposable income after she had paid her household bills and had no assets.
     
    The cost of entering a the debt solution had gone down from £90 to £50 so Lynne was able to write off her debt. Though she was aware her credit rating would be affected Lynne was happy to proceed with this and felt she could put the debt behind her and get on with her life.
    Jane, 43 years old, Glasgow

    Jane contacted us in January 2020, she was widowed with one child, having recently overspent during Christmas Jane was juggling finances in a bid to try and cover the cost of the festive period. 

    Jane was unemployed and was also renting a 2 bedroom flat, she had no disposable income each month after covering her monthly household essential bills.

    It was decided that the minimal asset process (MAP) was the best way forward for Jane at this time; this is because her debt was below £17,000, she had no income other than benefits and had no assets. Jane’s total debt was just less than £15,000 so we advised her that the MAP would be the right solution for her, costing her a one off payment of £90.00 to enter.