Minimal Assets Process (MAP)

A minimal asset process bankruptcy allows you to start afresh by writing off debts that you cannot repay within a reasonable time. It is aimed at people with not many assets and a low income and is more straight forward and cheaper than sequestration bankruptcy.

If you live in Scotland, this solution is available. If you live either in England, Wales or Northern Ireland you will be able to apply for debt relief order, which is a similar solution, but it is important to note that it has different fees, risks and benefits associated with it.

1 What is MAP?

A minimal asset plan allows you to pay off your debts if you have; a low income and assets to pay off your debts. The minimal asset plan will help you pay off your debts in a much easier way than sequestration bankruptcy.

We at Free Debt Helpline can provide you with information on minimal asset process which will help you establish the available options based on your income streams and debts.

Potential benefits of MAP Potential drawbacks of MAP
  •   Even though minimal asset process Scotland is a legal process, your appearance in court is not required.
  •   After you have applied for the minimal asset process, your bank is most likely to freeze your account credentials and allow you to create only basic accounts.
  •   For most cases, the debts are paid off within six months, after which you will be discharged from the minimal asset process.
  •   Your credit profile will be affected for a minimum of six years after the completion of the MAP Scotland..
  •   The application fee for the minimal asset process is £90, which is cheaper than the sequestration process.
  •   Opting for bankruptcy can have drastic effects on your job.
  •   The process protects you from your creditors increasing interest rates on your debts as well as providing you with immunity from any court actions being taken against you.
  •   Child support debts, student loan debts, on-going child maintenance debts etc. will not be included in the minimal asset process.
  •   The minimal asset process includes secured as well as insecure debts.
  •   In case you are self-employed, declaring bankruptcy can create a difficult situation in terms of trading and obtaining goods services.

2 How to apply for Minimal Asset Process:

We at Free Debt Helpline provide you with information on managing your debt plans. Our information will provide you with the guidance you need to create your minimal asset process.

To apply for the process, you need to provide your credit details including your information on current income streams, expenses, and debt repayments to be made. It should be kept in mind that the minimal asset process is only available to Scottish residents.

In addition, to apply for a minimal asset process Scotland you must not have assets which are valued more than £2000 or any single asset worth £1000. In terms of vehicles, you can have multiple vehicles that are not worth £3000 in total when combined.

For the application, you will need to have a total debt level of at least £1500 but no more than £17,000.

Furthermore, your insolvency expert will guide you and inform you of your financial plan in terms of the expense and debts to be paid for the next six months.

Your creditors will be informed of the process and you will be allowed to carry your term with the minimal asset process if your creditors agree to the terms.

3 How does it work?

After the application along with the application fee of £90 has been submitted, the Accountant in Bankruptcy will stop your payments for the debts for the next six months.

In addition, your creditors will not be able to contact you in terms of paying the debts or increasing the interest rate on your debts. In case they are contacting you, your insolvency practitioner will speak to them on your behalf.

After six months, if you keep to the terms of the process as well as your financial situation has not improved, your debt payments that were included in the plan will be written off.

However, if you are unable to keep up with the agreement terms, your application for the minimal asset process will be discharged and you can potentially face bankruptcy.

3 Thinking of applying for MAP bankruptcy? Things you must consider: 

Before making a division to apply for MAP bankruptcy, you must consider these points:

  •  Most debts are included but if you have any court fines, student loans or child maintenance arrears, you still need to make payments for them.
  •  You can only apply for MAP from an approved money advice organisation such as Free Debt Helpline
  •  During the MAP bankruptcy you will not be able to access any further credit so you will have to stick to your budget once everything is in place.
  •  Bankruptcy will make it harder to trade and obtain credit for goods or services if you are self-employed.
  •  You will need to check if it will affect your job.
  •  Bankruptcy can lead to disciplinary action or dismissal in certain jobs such as those working in financial services or the legal profession.
  •  You will need to provide proof of your income and expenditure such as bank statements and pay slips.
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