Minimal asset process (MAP) bankruptcy. What is it?

Can I apply for minimal asset process bankruptcy?

There are conditions you will need to meet to be able to apply for MAP bankruptcy:

• You must live in Scotland, or have lived in Scotland in the last 12 months
• Your debts add up to less than £25,000
• Your car is worth £3,000 or less
• Your other items of value (assets) are worth less than £2,000 in total, with no single item worth more than £1,000
• You cannot be a homeowner
• You have not gone through sequestration (bankruptcy in Scotland) in the last five years
• Your income is from income-related benefits only, such as jobseekers allowance (JSA), or your income is too low to pay anything else after essential living costs

How does the minimal asset process (MAP) application process work?

1. To find out if MAP bankruptcy is right for you, you will need to get advice from an approved money advice organisation, like StepChange. Get started with free online debt advice
2. If MAP bankruptcy is right for you, we can help you put together your application. We will ask for details of your income and debts, check your paperwork and support you through the process
3. When your application is ready, we will submit it to the Accountant in Bankruptcy (AiB). Your bankruptcy will usually be awarded five days after your application has been submitted

Common questions we are asked about minimal asset process (MAP) bankruptcy

Can all my debts be included in a MAP bankruptcy?

Most debts can be included in your MAP bankruptcy. But some debts cannot, and you must keep paying them separately. These include:

• Court fines
• Student loans taken out after 1998
• Child maintenance arrears
• Fraudulent debts - debts are considered 'fraudulent' when you have knowingly lied about your finances to get the credit

What happens when my MAP bankruptcy is awarded?

Your trustee will go through the conditions of your MAP bankruptcy with you. You must follow these conditions.

You will be discharged from bankruptcy six months after it is awarded if you follow the set conditions. It then takes another six months to finalise.

Can my creditors still contact me?

No. Once your MAP bankruptcy is approved, your creditors cannot contact you. They also cannot take legal action against you to recover debts.

Are there any restrictions with MAP bankruptcy?

After six months on MAP, you are discharged from bankruptcy. It takes a further six months to finalise. You will be under certain restrictions during this time.

• You must tell the lender you are bankrupt before you borrow more than £2,000, either on your own or with someone else
• You cannot run a business unless certain conditions are met

It can be seen as an offence if you do not comply. This could lead to a fine, or in rare cases, prison.

How can MAP bankruptcy affect me?

MAP bankruptcy can affect other parts of your life, like your job and home. But it depends on your situation.

• Your bank can close your account: This can happen after your bankruptcy has been awarded or after you are discharged. It usually happens if there is a credit facility attached to your account, like an overdraft. Banks are required to provide a basic bank account to you if they fully close your account
• Your job could be affected: Check your contract or speak to HR to find out if you are at risk
• If you rent: Your landlord may evict you or decide against renewing your tenancy agreement. Check your tenancy agreement to find out if you will be affected
• If you are self-employed: Bankruptcy may make it harder to trade. Especially if you rely on credit to pay for stock or services

Does MAP bankruptcy affect my credit file?

MAP bankruptcy does affect your credit rating as it appears on your credit file for six years.

You may find it hard to get credit during your bankruptcy, and for some time after you are discharged.

How can I find out if minimal asset process bankruptcy is right for me?

Use our online debt advice service to find out if MAP bankruptcy is right for you. Start, pause and pick up again in your own time. Getting debt advice has no impact on your credit score.