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Bankruptcy – Minimal Asset Process (MAP)

Bankruptcy (MAP) is similar to bankruptcy, but for people with income and assets of low value enough to be excluded from bankruptcy – so the process is more straightforward.

Bankruptcy MAP is available in Scotland only, the English and Welsh equivalent is Debt Relief Order (DRO).

Swift do not currently offer Bankruptcy MAP but offer a free consultation to determine your suitability and will refer you accordingly.

Important: Bankruptcy should only be considered in extreme circumstances after you’ve taken professional advice and explored all other options. Swift provide bankruptcy advice and can offer the support you need.

How MAP Bankruptcy works

Bankruptcy

This process allows people in Scotland with few assets and low income to escape the debt trap quickly and to make a fresh financial start. Further information is available from the Accountant In Bankruptcy, Scotland’s Insolvency Service.

If you meet specified criteria are you can apply for your own bankruptcy via the Minimal Asset Process and potentially be free of unsecured debts within six months.

You can’t apply directly to the Court – you must firstly seek the advice of a specially accredited money advisor or organisation. They’ll review all debts, income and assets and will be able to let you know whether this process is suitable and will manage the application with you.

You must be able to prove you are not able to pay your debts as they fall due nor have an realistic prospect to of being able to do so in a reasonable time.

You need to pay a fee of £90. The full amount needs to be paid and there are no exemptions or reductions available.

If you apply for bankruptcy through this process but do not meet the conditions, to continue with your application you must pay a further £110 to meet the £200 cost for full administration.

If you are awarded bankruptcy through MAP, as long as you continue to meet the requirements you will be discharged from your bankruptcy six months.

Bankruptcy MAP Criteria

To be able to apply for a Bankruptcy (MAP) you must meet all the criteria below:

  1. Your total debts are at least £1,500 but no more than £17,000.
  2. Your total assets are worth no more than £2,000.
    Basic household items and furniture you need for everyday living are not counted.
  3. You don’t have any individual assets that are worth more than £1,000.
    A car that you reasonably need will not be counted as long as it is not worth more than £3,000.
  4. You don’t own any land or buildings.
  5. You have a valid certificate for sequestration.
    This is a formal document confirming that you cannot pay your debts as they fall due.
  6. You have no money available after your essential bills to pay to your creditors.
    If your income is made up of only benefits, and have received them for at least 6 months before your application, you automatically meet this condition.
  7. You have not been made bankrupt under the minimal asset process rules in the past 10 years.
  8. You have not been made bankrupt under other rules in the past 5 years

Your MAP bankruptcy will last for six months, but you will be under certain restrictions if you apply for credit for a further.

Bankruptcy MAP Benefits

These are broadly the same as for Bankruptcy, plus :-

You don’t have to be ‘apparently insolvent’

A technical status meaning you’ve proven your liabilities to your creditors outweigh your assets

You repay only part of what you owe

It allows you to make a fresh start after six months any unpaid debts included MAP bankruptcy are written off*.

Confidence of good advice.

The accredited money advisor or organization ensures that you are given appropriate advice and that you fit the criteria.

Affordable costs

Less than the fee you would have to pay if you went bankrupt under other rules.

*Most unsecured debts can be included except: student loans, court fines, maintenance due under a court order, debts incurred through fraud (including benefit overpayments).

Bankruptcy MAP

These are broadly the same as for Scottish Bankruptcy.

Plus, You cannot apply under the MAP rules if you own your own home.

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