Minimal asset process FAQs
What debts are included in MAP bankruptcy?
Most debts are included in MAP bankruptcy. Some debts are not covered though, including court fines, student loans, child maintenance arrears or debts you took out fraudulently. You’ll have to continue paying these.
What happens once my MAP bankruptcy is awarded?
If your application is awarded and you continue to meet the conditions of MAP bankruptcy, you will normally be discharged six months after the bankruptcy was awarded.
Can my creditors contact me?
Once your MAP bankruptcy has been approved, creditors included in the bankruptcy can no longer contact you and they won’t be able to take legal action against you to recover debts.
Are there any restrictions with MAP?
Once you’re discharged, after six months on MAP, it will take a further six months to finalise everything. During this period, you’ll still be under certain restrictions, For example: You cannot borrow more than £2,000, either solely or jointly, without telling the lender that you’re bankrupt.
Not complying with these restrictions can be deemed as committing an offence, which could lead to a fine or in rare cases imprisonment.
What else does MAP bankruptcy affect?
MAP bankruptcy may affect you in other ways, depending on your circumstances. These include:
Your bank account: your bank is likely to close your bank account or freeze your account.
Your job: it’s important to check your job contract as soon as possible for any mention of bankruptcy or insolvency affecting your employment. Your HR department can advise you on whether bankruptcy would affect your job.
Your residence: some private landlords may evict tenants if they go bankrupt, especially if they have rent arrears. This is because rent arrears are included in MAP bankruptcy.
Your self-employment: If you’re self-employed, MAP bankruptcy may make it harder to trade, especially if you use credit to pay for stock or services.
Does MAP bankruptcy affect my credit file?
As with all forms of insolvency, MAP bankruptcy will affect your credit rating. Once your MAP bankruptcy is awarded, a record of it will appear on your credit file for a period of six years. You may find it difficult to obtain further credit during this time, even after you’re discharged.