MAP

A minimal asset process (MAP) bankruptcy gives you a fresh start by writing off debts that you can’t repay within a reasonable time.  It is designed for people with a low income and not many assets and is cheaper and more straightforward than sequestration.

How Does the Minimal Asset Process (MAP) Work?

To be eligible for a MAP, you must not own your own home and have either been receiving benefits for at least six months or have no disposable income.

Applications for a MAP must be made through an approved Money Adviser, and your total debt must be at least £1,500 and not exceed £25,000.

The application fee is £50, payable to the Accountant in Bankruptcy (AiB), but you may not have to pay this due to your financial situation.

After your discharge from the MAP, you will face certain restrictions on obtaining credit for an additional six months. Your Trustee will continue in their role during this time to complete the administration of your bankruptcy.

How Do I Apply for the Minimal Asset Process (MAP)?

Step 1: Consult an Approved Money Adviser

Begin by reaching out to an approved Money Adviser. They will evaluate your financial situation using the Common Financial Tool, which calculates your income and expenditure. If it is determined that you have no disposable income and cannot repay your debts, the process will begin.

Step 2: Apply to the Accountant in Bankruptcy

If a MAP is deemed suitable for your circumstances, your Money Adviser will issue a certificate confirming your eligibility. The application, along with a £50 fee, will be submitted to the Accountant in Bankruptcy (AiB) within 30 days. The Trustee will inform your creditors of the MAP, and you will no longer need to make payments towards your debts. Note that MAP is a form of bankruptcy, so any assets you have may still be used to repay your debts.

Step 3: Discharge After Six Months

Once your MAP is granted, you will be automatically discharged after six months. While you will be free from debt, your credit rating will be negatively impacted for at least six years, making it difficult to obtain credit during this period.

Step 4: Post-MAP Credit Restrictions

After discharge, you will face credit restrictions for six months. You cannot borrow more than £2,000 without informing the lender of your MAP. If you are self-employed, you must notify those you do business with about your bankruptcy. Additionally, if you acquire any new assets within four years of your MAP, your Trustee can use them to repay your debts.

Is MAP bankruptcy suitable for me?

You will need to meet the following criteria:

  • You live in Scotland or have lived in Scotland in the last year
  • You are on a low income. This can be defined in two ways:
  •  Your income is made up 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 less than £25,000
  • 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 are not a homeowner or own land
  • You have not been bankrupt in the last five years. Or had a MAP bankruptcy in the last ten years
  • You must not have £1000 or more in savings across all your bank accounts

Advantages & Disadvantages of MAP

Advantages

  • No Court Appearance: You do not need to appear in court to apply for a MAP.
  • Quick Resolution: The MAP process typically concludes after six months, at which point all included eligible debts are written off.
  • Protection from Creditors: Once your MAP is approved, creditors cannot pursue you for payment.
  • Freeze Interest and Charges: Creditors are unable to add additional interest and charges or take legal action against you.
  • Wide Range of Debts Covered: Most unsecured and priority debts are included in a MAP. However, some exceptions apply, such as TV licence arrears, court fines, student loans, and debts obtained fraudulently.

Disadvantages 

  • Impact on Credit File: Your credit record will be affected for six years.
  • Bank Account Issues: Your bank may close or freeze your accounts, limiting you to a basic bank account.
  • Employment Consequences: Your job could be impacted by entering a MAP.
  • Rental Concerns: If you rent, your landlord might choose to evict you or not renew your tenancy agreement.
  • Challenges for Self-Employed: If you are self-employed, you may find it more difficult to trade and obtain credit for goods and services.

Why Choose Your Financial Wellbeing for a MAP?

Worrying about debt can be overwhelming and affect your peace of mind, but finding the right support can make all the difference. At Your Financial Wellbeing, we understand the stress that debt can cause and are committed to providing empathetic, trustworthy debt guidance.

As a Social Enterprise, we prioritise your needs in every decision we make, using our extensive expertise to help you find the debt solution that suits you best. Our advice is always free, confidential, and impartial. Our trained experts are here to support you through every step, ensuring that the final decision is yours to make. We’re here to help you achieve the fresh financial start you deserve.

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