Minimal Assets Process (MAP)
A minimal asset process bankruptcy allows you to start afresh by writing off debts that you cannot repay within a reasonable time. It is aimed at people with not many assets and a low income and is more straight forward and cheaper than sequestration bankruptcy.
If you live in Scotland, this solution is available. If you live either in England, Wales or Northern Ireland you will be able to apply for debt relief order , which is a similar solution, but it is important to note that it has different fees, risks and benefits associated with it.
1 What is MAP?
A minimal asset plan allows you to pay off your debts if you have; a low income and assets to pay off your debts. The minimal asset plan will help you pay off your debts in a much easier way than sequestration bankruptcy.
We at Free Debt Helpline can provide advice on minimal asset process as well as provide an effective analysis of the options that are available for you considering your income streams and debts.
|Potential benefits of MAP||Potential drawbacks of MAP|
2 How to apply for Minimal Asset Process:
We at Free Debt Helpline provide you with the facility of managing your debt plans according to your income streams. We will act as your money advisor and guide you through the process of creating your plan for minimal asset process.
To apply for the process, you need to provide your credit details including your information on current income streams, expenses, and debt repayments to be made. It should be kept in mind that the minimal asset process is only available for the Scottish residents.
In addition, to apply for a minimal asset process you will need to have assets no more than £2000 as well as no single asset can be worth £1000. In terms of vehicles, you can have multiple vehicles that are not worth £3000 in total when combined..
For the application, you will need to have a total debt level of at least £1500 but no more than £17,000.
Furthermore, your insolvency expert will guide you and inform you of your financial plan in terms of the expense and debts to be paid for the next six months.
Your creditor will be informed of the process and you will be allowed to carry your term with the minimal asset process if your creditors agree to the terms.
3 How does it work?
After the application fee of £90 has been submitted along with the application and creditor certificate of no obligation, the Accountant in Bankruptcy will stop your payments for the debts for the next six months.
In addition, your creditors will not be able to contact you in terms of paying the debts or increasing the interest rate on your debts. In case they are contacting you, your insolvency practitioner will speak to them on your behalf.
After six months, if you keep to the terms of the process as well as your situation in terms of financial income has not improved, your debt payments that were included in the plan will be written off.
However, if you are unable to keep up with the agreement terms, your application for the minimal asset process will be discharged and you can face bankruptcy.
It is important to remember that you should not have gone through sequestration or been awarded minimal asset process in the past five years for being qualified for the current plan.
3 Thinking of applying for MAP bankruptcy? Things you must consider:
Before making a division to apply for MAP bankruptcy, you must consider these points:
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4 Who could apply for MAP bankruptcy?
You must meet the following conditions before you apply for MAP:
5 How does the process MAP bankruptcy works?
In order to apply for MAP you need to pay £90 of fee. The full amount has to be paid and reductions or exemptions are unavailable.
You cannot apply without getting advice from an approved money advice organisation such as Free Debt Helpline.
We can help you work out if MAP is the best option for yourself. If so we will ask you to send us details of your debts and incomes. We will provide all the support you need and check all your paperwork.
You should also be aware that with MAP bankruptcy your details will be put on a public register entitled the Register of Insolvencies (ROI) for a five years.
Need Debt Help Now?
The expert team at Free Debt Helpline change people's lives for the better.
Your bank will close your account and you will find it hard to open a replacement
Bankruptcy can result to either disciplinary action or dismissal in certain jobs
Your landlord will evict you if you are living in private rented house or that you have rent arrears.
If you’re self-employed, bankruptcy may make it harder to trade, especially if you rely on credit to pay for stock or services
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