Minimal Asset Process Bankruptcy

What Is Minimal Asset Process Bankruptcy?


What Is Minimal Asset Process Bankruptcy?

Minimal Asset Process Bankruptcy is a cheaper, more straightforward alternative to Sequestration for people with low income and minimal assets.


You must be a resident of Scotland, have debts between £1,500 and £17,000 and not be a homeowner or own land. You must be on a low income – this is defined as either your income solely consisting of income-based benefits, or if you are working, that you have no disposable income left that you can use to make a regular debt payment. You cannot have a car worth more than £3,000 and your other assets must be worth less than £2,000 (with no one item worth more than £1,000). You cannot have been declared bankrupt within the last five years.

Advantages and Benefits

  • The setup fee is relatively low at £90, which can be paid in four instalments.
  • The process usually lasts for 6 months.
  • Creditors cannot legally chase you for payments.
  • Most unsecured debts can be included.
  • Your included debts will be written off upon completion.

Disadvantages and Potential Consequences

  • MAP will adversely affect your credit rating and may affect your ability to obtain credit.
  • MAP will be recorded on the insolvency register, which can be searched by the public.
  • Being in MAP bankruptcy can impact on certain jobs. If you are unsure check your contract.
  • It’s likely that any valuable assets will need to be sold.
  • If your financial circumstances improve, you may have to go through the full sequestration process.