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.

    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 a registered charity:

    StepChange: 0800 138 1111
    Debt Advice Foundation: 0800 043 40 50
    Citizens Advice Bureau: 0808 223 1133
    National Debtline: 0808 808 4000

    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.