What is a Minimal Asset Process [MAP]?
A MAP is only available to people who live in Scotland and is essentially a simpler and cheaper route into sequestration, aimed at people who have minimal or no realisable assets and who are on low income. It is similar in nature to the Debt Relief Order (DRO) process which is available to people who live in England, Wales and Northern Ireland. As with a DRO, you must meet certain strict criteria for a MAP to be available as an appropriate debt solution for you. Provided that you do meet the relevant criteria then a MAP will likely be a more beneficial way for you to deal with your debts.
Who can benefit from a Minimal Asset Process?
MAPs are only available if you meet certain strict criteria: –
- You must live in Scotland
- You must not own your own home
- Your total assets (not including a car) must be less than £2,000 with no single asset worth more than £1,000
- If you do own a car, it must be worth less than £3,000
- You must be on a low income – meaning that either your income is solely made up of benefits (i.e. Job Seekers Allowance) or you have no surplus income after taking into account your essential living costs
- Your total debts must be more than £1,500 and less than £17,000
- You must not have been sequestrated (bankrupt) within the last five years
How does a Minimal Asset Process work?
A MAP differs to a normal sequestration in that it generally lasts for six months and, so long as your circumstances do not change in the six months prior to you being discharged then you will not have to pay any payments into your MAP.
At the end of the six month period then all of your debts in the MAP are written off. During the six month period your creditors are unable to take any enforcement action against you to recover the amounts which they are owed.
Whilst a MAP is an alternative to sequestration, it is a similar formal insolvency process for dealing with your debts. Please refer to our pages on sequestration for further information.
If at any point during the six month period your financial circumstances change, then you must inform the Accountant in Bankruptcy immediately and your MAP will convert to a normal sequestration.
Interested? Get in touch today!
So, you are interested in a MAP and you think that it might be the right option for you.
MAPs are dealt with by the Accountant in Bankruptcy (AIB), in conjunction with an authorised person (such as an insolvency practitioner or regulated money adviser), who will assist you in applying to the AIB for a MAP. You can find some useful information on the process and what you need to do by visiting the Money Advice Service, which provides free and impartial advice, set up by the government – you can find their website by clicking the link https://www.moneyadviceservice.org.uk/en. Or alternatively, you can get in touch with us to assist you with the process or contact the AIB directly.
If you are unsure whether a MAP is right for you or whether you meet the strict criteria, if you use our Save Me request form, this will allow us to give you best advice, by phone at a convenient time for you.
Alternatively, you can give us a call on 0808 164 3750 (Freephone) and we will be happy to have a chat with you.