MINIMAL ASSET PROCESS

It is formal debt solution possible only in Scotland (similar to DRO in England) for people whose 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 and your assets are worth less than £2,000 in total, with no single item worth more than £1,000. This process is easier and less expensive than Sequestration. You can only apply for MAP through an approved money advice organisation, like www.stepchange.org. To apply for MAP you need to pay £90. Although MAP bankruptcy is a formal legal process, you won’t need to appear in court. You can apply if your debts are more than £1,500 and less than £17,000.

Advantages of MAP:

  • Usually you will be discharged from MAP after six months, after which most debts will be legally written off
  • After approving the MAP, your creditors can not pursue you for paying or charging interest and fees to your debts. They can not take any court action
  • Most unsecured debts can be included in MAP
  • Although MAP bankruptcy is a formal legal process, you do not have to go to court

Disadvantages of MAP:

  • Your credit rating will be affected for six years from the day your MAP bankruptcy begins
  • Some private landlords may evict tenants or not renew a tenancy agreement if you become bankrupt
  • If you are self-employed, bankruptcy can make it difficult to trade and get credit for goods and services
  • You will not be able to take a mortgage
  • MAP may affect your credity score and evidence of entering into a MAP will be entered on public register

 

Where MAP is available, there may be other options that are available and suitable for you.