MAP is the route into sequestration (bankruptcy) for Scottish residents who have low income, do not own a property and have very little savings or other low assets. It was introduced in April 2015. If you’ve run out of debt solution options, and you have limited means, then MAP could offer a route into the sequestration process.
The criteria is as follows –
• Total debts are at least £1,500 but no more than £17,000.
• Total assets are worth no more than £2,000 and no individual asset worth more than £1,000.
• A car the client reasonably needs up to the value of £3,000.
• No property or land can be owned.
• Have a valid certificate of sequestration, which is a formal document confirming that the client cannot pay their debts as they fall due.
• Financial statement shows that they have no money available after essential bills to pay to their creditors. If made up only of benefits and have received them for 6 months before the application they will automatically meet this condition.
• Not been made bankrupt under the MAP conditions in the last 10 years.
• Not been made bankrupt under other rules in the past 5 years.
Court fines, Maintenance payments, Student loans, debts incurred due to fraud and payments for damages are excluded. You will still have to maintain payments to these debts. Secured debts are also excluded, although the related asset may be sold (see below).
As this process is a form of sequestration for Scottish residents who meet the above criteria, the application process is the same as for a standard sequestration application. You would obtain a Certificate of Sequestration from an Approved Money Adviser who would need to look over your finances and deem that you can no longer pay your creditors. Once you have your certificate, then within 30 days you can apply for your sequestration (called a petition) to the Accountant in Bankruptcy through your Money Adviser. There is a £90 fee for applying for sequestration under the Minimal Assets Process.
Once your application for sequestration under the Minimal Assets Process is granted, you will be automatically discharged after a period of 6 months following which you will be debt free.
Applying for sequestration under the MAP provisions will have a major effect on your credit rating for at least 6 years, making it highly unlikely that you’ll be able to borrow money during that period. For six months after your discharge the following restrictions apply –
• If you apply for credit of £2,000 or more, you must tell the creditor that you have been bankrupt and are under this restriction.
• If you apply for credit of any amount when you already have debts of £1,000 or more, you must tell the creditor that you have been bankrupt and are under this restriction.
• If you are self-employed you must tell anyone that you do business with the name of your business when you went bankrupt.
MAP Is a form of sequestration (bankruptcy) and so is a very serious way of dealing with your debts. Your assets may still be sold off to go towards repayment of your debts, and applying for sequestration via the MAP provisions can cause you to be disqualified from holding certain positions of employment. After discharge, if you gain new assets within four years of the date of your bankruptcy, the trustee will be able to claim them. Also your trustee continues to have a duty to sell any assets.
Your sequestration will also be recorded on the Insolvency Register, and may be publicly announced. As stated above, this may mean that you are likely to subsequently find it very difficult to obtain any kind of credit in the future.
This scheme might be a suitable debt strategy for you although there may well be more beneficial debt solutions available to you, depending on your circumstances. However, we will let you know if this is an option available to you and how you can apply.
Alternatively, you can visit https://www.mygov.scot/how-do-i-apply-for-bankruptcy/ or https://www.nationaldebtline.org/S/Pages/default.aspx or call 0808 808 4000.