MAP was introduced in April 2015 for Scottish residents who do not own their own property, have little or no savings and are on a low income. MAP allows people in this situation a way into sequestration.
The following measures need to be met:
• A minimum debt of £1500.00 but cannot exceed £17000.00.
• Assets cannot total more than £2000.00 and no individual asset worth more than £1,000.
• A client can own a car that they need but the car cannot be worth more than £3000.00.
• No land or property can be owned.
• Have a valid certificate of sequestration, this is a formal document confirming that the client cannot pay their debts when they are due.
• Financial statement shows that they have no money available after essential bills to pay to their creditors. If made up only of benefits and have received them for 6 months before the application they will automatically meet this condition.
• Not been made bankrupt under the MAP conditions in the last 10 years.
• Not been made bankrupt under other rules in the past 5 years.
You will need to maintain the following Payments:
- Court fines
- Maintenance payments
- Debts incurred due to fraud and payments for damages
- Student loans
- Secured debts, however the asset relating to the debt may be sold
An approved Money Adviser will assess your finances and once agreed will issue a Certificate of Sequestration.
Once you have your certificate, then within 30 days you can apply for your sequestration (called a petition) to the Accountant in Bankruptcy (AIB) through your Money Adviser. There is a £90.00 fee for applying for sequestration within the Minimal Assets Process.
Six months after your application is approved you will be automatically discharged and you will be free of debt.
After the discharge the following restrictions will apply:
• If you apply for credit of £2,000 or more, you must inform the creditor that you have been bankrupt and are under this restriction.
• If you apply for credit of any amount when you already have debts of £1,000 or more, you must tell the creditor that you have been bankrupt and are under this restriction.
• If you are self-employed you must tell anyone that you do business with the name of your business when you went bankrupt.
As MAP is a form of sequestration it will be recorded on the Insolvency register and be made public which will have an adverse effect on you borrowing funds in the future. MAP can also place restrictions on certain roles of employment and if you obtain new assets within four years of the date of your discharge, your trustees can claim them and is duty bound to sell them too.
As with Sequestration, MAP is very much a last resort as it will have a serious impact on your life and your family. All other solutions should be explored before this option is considered.