Minimal Assets Process is a form of bankruptcy that writes off debts deemed to be unmanageable
In a nutshell The Minimal Asset Process (MAP) is a form of unsecured bad debt help available to debtors in Scotland who have a low income, with no money left over following the payment of essential living costs (e.g. your rent, utilities and council tax).
MAPs (which replaced LILA bankruptcies) write off debt that you wouldn’t be reasonably able to repay within a moderate period of time, although you should seek impartial debt advice in the UK before moving ahead.
What debt problems is this debt help suitable for?
A MAP may be the best debt help if:
- Your debts total to between £1,500 and £17,000
- You don’t have any disposable income
- You haven’t filed for bankruptcy in the previous five years
- You don’t own property
- You don’t have significant assets (e.g. assets that are worth £2000 or more in total, nor a single asset worth £1000 or more)
Our debt expert’s opinion on the pros and cons…
Advantages of Minimal Assets Process (MAP)
- With MAP debt assistance, your creditors will no longer be allowed to contact you.
- The process, from start to finish, lasts 6 months – rather than 12 months (as with bankruptcy).
- Most unsecured debts can be included.
Disadvantages of Minimal Assets Process (MAP)
- Your information will appear on the Register of Insolvencies – an online, publicly accessible database. Where it will remain for 5 years.
- You won’t be permitted to apply for credit for 6 months following the completion of the MAP.
- The MAP will appear on your credit record and will remain there for six years.
Worried about debts that won't go away?
FAQs – Minimal Assets Process
How is the Minimal Assets Process (MAP) different from Sequestration?
How will a Minimal Assets Process (MAP) affect my credit rating?
Will MAP mean that I lose my home?
What would happen if I was no longer eligible for MAP after a few months?
How do I apply for a MAP?
What other effects can a MAP have on my life?
Will a Minimal Assets Process (MAP) mean that I have to give up my car?
How long will my MAP bankruptcy last?
MAP is suitable for those who have no spare income or who are benefits, and it has a lower application fee compared to Sequestration, costing £90, rather than £2000 for Sequestration.
You’re free to apply for Sequestration (it’s open to anyone), however if you have no surplus income or assets, you should consider MAP instead.
MAP will be registered on your credit file for six years. During this time securing credit will be difficult.
MAP isn’t suitable for those who own their own home. Instead, you should explore alternative debt solutions.
If you’re a tenant, you should read your tenancy contract to see whether there are any terms in relation to MAP or Sequestration.
There are several reasons that may become ineligible for MAP:
• You are found to have debts totalling more than £17,000
• You are found to have assets above MAP limits
• Your situation has changed which has positively altered your income
In these instances, you would be transferred onto Sequestration and would be liable to page a fee of £110.
You’ll need to apply via a professional debt of financial advisory service.
MAP bankruptcy may lead to:
• Problems with your employment if bankruptcy is prohibited within your employment contract
• Closure of your bank accounts
• Eviction from your rental property if insolvency is not allowed as part of your tenant agreement
• Difficulty in continuing your business owing to limited access to credit
Your car won’t be affected by MAP; however you can’t consider MAP if your vehicle is valued above £3000.
The majority of people are discharged from their MAP after a year, however there are some exceptions, and if you have surplus income you may need to make payments over a period of four years.