Minimum Asset Process (MAP) – Scotland Bankruptcy Warnings

Are you trying to learn more about the minimum asset process (MAP, but aren’t sure where to start looking for information? Don’t worry! You’ve come to the right place for answers. Every month, thousands of people with similar questions visit our website looking for guidance.

In this article, we’ll explain:

• Who a MAP process is best for.
• The disadvantages of MAP bankruptcy.
• The advantages of MAP bankruptcy.
• How to apply for MAP bankruptcy,

Our team knows how you feel, as many of us have been in your position, so we know exactly how to help you figure things out and learn more about your options. Let’s dive in and discover all there is to know about MAP bankruptcy.

Who Is Minimum Asset Process Bankruptcy Best For?

If you are looking for a way to clear your debts in Scotland, MAP bankruptcy might be an option, but only if you are eligible. We have listed the terms of eligibility below.

• You reside in Scotland, or did within the last 12 months.
• You are on a low income. Either poorly paid, or living on benefits.
• Your debt is less than £25,000, but more than £1,500.
• If you own a car, its value £3,000 is or less.
• The sum of all your other tangible assets is less than £2,000, and no single item is worth more than £1,000.
• You don’t own any land or your home.
• You were not bankrupt within the previous 5 years.

The Advantages of MAP Bankruptcy

There are some clear advantages in opting for MAP bankruptcy over traditional bankruptcy, as this is a scheme that is aimed at helping people on a low income, with some measure of personal debt. Rather than people who have racked up a high level of debt, even though they were earning good pay. We have listed some advantages below.

• There is no need for you to appear in court.
• It costs just £50 to set the scheme up, and in some cases, this fee might be waived entirely.
• MAP bankruptcy usually only lasts 6 months, and your debts are written off after this time.
• Once the scheme is in place, your creditors have to stop hounding you for payment.
• Almost all types of unsecured debts are covered.

The Disadvantages of MAP Bankruptcy

Of course, being declared bankrupt is going to have some negative aspects. After all, this is a sign that your creditworthiness is less than stellar, and that you are not that great at managing your finances. Here are some of the disadvantages of MAP bankruptcy.

• Your credit rating will be negatively impacted for 6 years.
• It is likely that any current account you have will be frozen by your bank. You should still be able to open a new basic bank account.
• In some jobs, bankruptcy is seen as a problem, and could result in your dismissal.
• You might find it hard to rent property, or your existing landlord may not be willing to renew your tenancy.
• Not all debts are covered. And this includes court fines, child maintenance and student loans, for example.
• If you are a self-employed person, you may find that suppliers are unwilling to offer you trade credit.

None of these disadvantages is particularly surprising. If you have debt problems that are serious enough for you to consider MAP bankruptcy, you already know that there will be negative implications if you follow this route.

How To Set Up How To Apply for a Minimal Asset Process Bankruptcy

An Accountant in Bankruptcy (AiB) takes responsibility for managing the bankruptcy, and this is who the £50 fee is paid to. However, it will be a debt advice organisation that is approved to handle MAP bankruptcy that will do most of the work involved in setting up your bankruptcy scheme.

Because you don’t need to attend a court hearing as part of the process of setting up the bankruptcy, you likely won’t even need to deal with the management organisation face to face, as you would apply online.

It is the court that decided whether to allow you to be declared bankrupt under the MAP scheme. This is not a forgone conclusion and your own unique circumstances would impact your eligibility. However, the debt advice organisation that is managing your bankruptcy would be able to advise you on whether it is probable that bankruptcy would be allowed.

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Finding More Info

It might pay to do a little research yourself. There are a number of excellent public forums that have whole sections related to dealing with debt. However, if you post asking a specific question, make sure that you check any facts you are given by other members of the public before acting on them.