Minimal Asset Process (MAP)
Minimal Asset Process (MAP) is a route into bankruptcy for Scottish individuals with few assets and no disposable income.
Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting MoneyHelper.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
What is Minimal Asset Process (MAP)?
MAP allows you to write off 100% of your unsecured debts, provided you meet the qualifying criteria for this route into bankruptcy.
MAP is aimed at individuals with few assets, no disposable income or income being derived from benefits only. If you are declared bankrupt via this process, you will be discharged after 6 months. If you are in receipt of certain prescribed social security benefits and/or you have no disposable income, then there is no application fee payable. You can only be declared bankrupt via MAP once in any 10 year period.
MAP Qualification Criteria
The MAP route into Bankruptcy may be for you if:
- The client must not owe more than £25,000
- The client does not own a single asset worth over £1,000 (this excludes a vehicle which does not exceed £3,000 and is reasonably required)
- The total value of assets does not exceed £2,000
- The client must have received advice from an Approved Money Adviser
- The client must be living in Scotland or have lived in Scotland within the last 12 months
- The client must not have been made bankrupt in the last five years
- The client must not have been made bankrupt through the Minimal Asset Process within the last 10 years
- The client must have a certificate for sequestration signed by an authorised person
- The client must have been in receipt of benefits only, for the last six months; or
- A money adviser has assessed the client’s income and expenditure using the common financial tool and the client has no surplus to pay a debtor’s contribution.
- The client does not own any land or property
What Our Clients are Saying
Advantages & Disadvantages of the Minimal Asset Process (MAP)
- You make one, affordable payment to repay your debt(s)
- Your creditors cannot take legal action against you to recover the debts owed to them
- Any assets you own, including your home, are unaffected by DAS
- Interest, fees and charges are frozen from the date your application is made and are written off when your DPP is completed
- There are no fees to pay to apply for or have your DPP administered – see section on Fees for further info
- An earnings arrestment will be stopped on the approval of your DPP under DAS
- If your creditors reject your application, they can be forced to comply if the proposal is deemed to be ‘fair and reasonable’ by the DAS Administrator
- Mortgage, secured loan and rent arrears can be excluded from your DPP
- In DAS there is no debt written off, only relief from further interest, fees and charges. Therefore, in DAS you are deemed to be repaying your debts in full and the repayment period is likely to be longer than the alternatives of a Protected Trust Deed or Sequestration
- Your credit rating may be adversely affected, in a similar way to Trust Deeds and Sequestration
- Your DPP may be rejected by creditors and deemed to be not ‘fair and reasonable’, meaning you may need to consider other options such as a Protected Trust Deed
- Your DPP will be registered on the DAS Register, a publicly available online register of all DPPs in Scotland
- If you do not comply with the conditions of your DPP then it may be revoked. Creditors are then free to pursue legal action against you and to add back their interest, fees and charges
Find out more
Contact our team at Harper McDermott to find out more about the Debt Arrangement Scheme and any of the other debt solutions available to you in Scotland.
Harper McDermott are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today!
Further Information
We provide advice on all statutory debt solutions available in Scotland, see below for more information:
