MAP bankruptcy (Minimal Asset Process) - Scotland only
With MAP, you could have:
- A lower cost, shorter term bankruptcy option
- Unaffordable unsecured debts written off on successful completion
- Protection against action from lenders - although your credit rating will be seriously affected
The Minimal Asset Process (MAP) route into bankruptcy
- If you are based in Scotland, you don’t own (or jointly own) property or other land
- have no spare money to make payments towards unsecured lenders once all essential bills have been paid or have been on a benefits based income for at least 6 months
- have less than £2,000 of assets with no single asset worth more than £1,000, (except for your car which can be worth up to £3,000 if it's use is essential)
- have between £1,500 and £17,000 of debt
- you haven't been bankrupt in the last 5 years or if you have been bankrupt under MAP you cannot apply again for 10 year
You may be able to apply for bankruptcy through the MAP scheme. This replaces the previous LILA (Low Income, Low Assets) scheme which was discontinued on 1st April 2015.
No more demands from lenders
Once your bankruptcy has been agreed, you'll have legal protection from lenders who will deal directly with the Trustee dealing with your bankruptcy - they can't take any further action regarding your unsecured debts.
It's normally over after just six months
Some debt solutions can take several years, but if your circumstances don't change, you'll be free of the debts covered by MAP bankruptcy after just six months.
How MAP bankruptcy works
MAP is a form of bankruptcy that is only available to Scottish residents with less than £2,000 of personal assets, who have no spare money to make payments towards unsecured lenders once all essential bills have been paid and have a debt value between £1,500 and £17,000.
Once your bankruptcy has been agreed, you'll be protected against further action from your lenders, your unaffordable unsecured debts will normally be written off after 6 months, and you’ll have to comply with certain restrictions for a further 6 months
Is it right for me?
If you want to go bankrupt MAP could help.
However, you will only be able to go bankrupt if you really can't afford to repay your unsecured debts in full within a reasonable period of time.
You'll only qualify for MAP bankruptcy if you have no spare money to make payments towards unsecured lenders once all your essential bills have been paid or have been on a benefits based income for at least 6 months. You must also have belongings worth less than £2,000 in total and £1,000 individually (except for a car, which can be worth up to £3,000 as long as it's essential) and a debt level between £1,500 and £17,000.
Although MAP could really help if you qualify, you must remember that bankruptcy will have a significant impact on your credit rating. A record of it will be kept on the Register of Insolvencies and on your credit file for six years after your bankruptcy order is issued which could make borrowing money very difficult.
- 0161 669 8925
- 0161 669 8925