What is the ‘MAP’?
Another form of Scottish bankruptcy is the ‘Minimal Asset Process’ (MAP). It is a form of debt solution only available in Scotland that is often compared to the ‘Debt Relief Order’. After gaining formal, mandatory advice and guidance from an approved adviser, you can apply with a £90 fee. After six months, your debts are written off.
While sequestration allows creditors to regain some of their payment through the sale of your assets and monthly payments of your surplus income, MAP is specifically for those without assets and with a low income who are struggling with debt. Therefore, the criteria for application is quite strict and only some people are eligible.
To be eligible for sequestration, as opposed to MAP, you need to:
- Be resident in Scotland within the last 12 months, or have a place of business in Scotland
- Have debts over £3000
- Have an authorised Certificate of Sequestration from an official authority, and have been formally advised by an authorised advisor
- Have not been made Bankrupt in the last 5 years
- Pay £200 to the Accountant in Bankruptcy (AiB)
On the other hand, to be eligible for MAP, you need to:
- Have a minimum debt of £1500
- Have a maximum debt of £17000
- Have no asset over £1000, with the exception of a vehicle
- Own a vehicle worth less than £3000, if at all
- Have a total assets of £2000
- Either be receiving benefits for at least the last 6 months, or have been formally assessed by an advisor as having no surplus income
- Own no property or land
- Have been formally advised by an authorised advisor and have a certificate for sequestration
- Be resident of Scotland in the last 12 months
- Have not been made bankrupt in the last 5 years
- Have not had a MAP bankruptcy in the past 10 years
It is also important to note that, like sequestration, a few debts are not included in a MAP bankruptcy. These include:
- Court fines
- Child maintenance arrears
- Student loans
Remember: like all bankruptcies – it is important that you seek legal advice, and check contracts, such as your employment and rent contracts, before you apply. Some careers and landlords prohibit bankruptcy. To find out more about the MAP and sequestration, click here.