Minimal Assets Process (MAP) Bankruptcy

MAP stands for 'Minimal Assets Process'.  This scheme is for Scottish residents who have a very low income and very few assets to pay off their debts with. It's is a good alternative route into bankruptcy (also known as sequestration in Scotland), for those with unmanageable debts.

Legal protection from lenders

Once a MAP bankruptcy has been agreed, you will be protected from your lenders.

Applications for a MAP bankruptcy can be made through Citizens Advice Scotland. MAP bankruptcy is not suitable for everyone. Before considering a MAP bankruptcy, speak to a debt advisor from Debt Advisory Line.

Benefits

  • Write off your unsecured debts, typically last 6 months.
  • Low value assets alternative to standard bankruptcy (also known as sequestration).
  • It gives you protection from your creditors.

How does it work?

MAP: Minimal Asset Process

Applications for a MAP bankruptcy can be made through Citizen Advice Scotland. If you qualify and wish to apply for a MAP you will need to pay a fee of £90. The full amount needs to be paid and there are no exemptions or reductions available.

Before considering a MAP bankruptcy, speak to a debt advisor at Debt Advisory Line. We can help you work out if a MAP bankruptcy is the best option for you, and if not, we can offer you other debt solutions.

Who can apply?

To apply you must meet the following conditions:

  • You live in Scotland.
  • You’re on a low income. This can be defined in two ways: Your income is made up solely of income-related benefits such as jobseekers allowance (JSA), or the amount of money you earn covers your essential living costs but you have nothing left over.
  • Your debts are more than £1,500 and less than £17,000.
  • Your car is worth £3,000 or less.
  • Your other assets are worth less than £2,000 in total, with no single item worth more than £1,000.
  • You’re not a homeowner or own any land.
  • You haven’t been bankrupt in the last five years, or previously been on a MAP in the past 10 years.

 

Advantages of a MAP bankruptcy

  • Most unsecured debts types can be written off, typically lasts 6 months.
  • It allows you to make a fresh start with your money.
  • It gives you protection from your lenders.

 

Disadvantages of a MAP bankruptcy

  • As with a standard bankruptcy (also known as sequestration in Scotland), a MAP bankruptcy will significantly affect your credit rating for 6 years, making it extremely difficult for you to get credit in this time. Your details will also appear on a public register of insolvencies.
  • You must abide by the restrictions of the administrator.
  • It may harm certain employment prospects both now and in the future.

How to apply?

Applications for a MAP bankruptcy can be made through Citizens Advice Scotland. MAP bankruptcy is not suitable for everyone. Before considering a MAP bankruptcy, speak to a debt advisor from Debt Advisory Line. Bankruptcy is a last resort for most people, and in many cases there are other alternatives. But for those who are really struggling, have a low income and cannot afford to repay any of their debt, it's a good solution. Our team of highly trained advisors will be able to tell you whether it's the right thing for you, and if it's not, we can offer you other debt solutions.

How long does it last?

It normally lasts for six months. At this point, your debts are written off, but you can’t apply for any further credit for an additional six months.

Debts included

Most debts are included, but if you have any court fines, student loans or child maintenance arrears, you’ll need to keep paying these as normal.

Credit file

A MAP bankruptcy will appear on your credit file for six years, and you’ll find it much harder to get further credit during this time. Your details will also appear on a public register of insolvencies.

How could it affect you?

It may affect you in other ways depending on your individual circumstances, for example:

  • Your bank is likely to close your account, and you may find it difficult to open a replacement.
  • Bankruptcy can lead to disciplinary action or dismissal in some jobs (advisable to check your contract of employment).
  • If you live in private rented housing or you have rent arrears, your landlord may evict you.
  • If you’re self-employed, bankruptcy may make it harder to trade, especially if you rely on credit to pay for stock or services