May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting MoneyHelper.
How does MAP work?
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.
What are the qualifying criteria for MAP?
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
Advantages of MAP
- It is possible to write off 100% of your debt
- Your Trustee will deal with your creditors – taking away the pressure of the constant phone calls and distressing mail
- Creditors cannot take legal action against you to recover their debt
- Interest, fees and charges are frozen – the creditors can only claim for the outstanding balance due as at the date of sequestration
- You will normally be discharged from MAP after 6 months
- The application to the AiB does not involve court proceedings
- Sequestration stops or removes the effect of existing diligence e.g. an earnings arrestment or an Inhibition
Disadvantages of MAP
- You are unable to act as a director of a limited company or be involved in the formation, promotion or day-to-day financial management of a limited company.
- It may harm your employment prospects, both now and in the future
- Student Loans are not discharged
- Adverse effect on your credit rating
- For 6 months after your discharge, you cannot apply for credit of £2,000 or more, without telling the creditor that you are a discharged bankrupt
- For 6 months after your discharge, you cannot apply for credit of any amount when you already have debts of £1,000 or more, without telling the creditor that you are a discharged bankrupt
- For 6 months after your discharge, if you are self-employed, you must tell anyone that you do business with the name of your business when you were declared bankrupt
- You are unable to act as a Member of Parliament or a Justice of the Peace.
- You may be in breach of certain contractual obligations by being made bankrupt e.g. tenancy/lease agreements, various licences, employment contracts, HP agreements, insurances etc.
Find out more
Contact an experienced money adviser at Harper McDermott to find out more about the debt solutions available to you.
We 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!
