0161 667 2599

What you need to know about MAP bankruptcy

Debt Solutions»MAP

What is MAP

The MAP form of bankruptcy could help you get free of unaffordable unsecured debts, even if you haven't received approval from your lenders.

You could qualify for a MAP bankruptcy if you have few valuable assets.

To find out whether MAP could help you, request a callback or call 0161 667 2599 to speak with one of our friendly debt advisors.

How does the MAP route into bankruptcy work?

MAP (Minimal Asset Process) has been introduced to help ensure that people in vulnerable circumstances don't have to wait to get the help they need with their unsecured debts. It replaced the previous LILA (Low Income, Low Asset) scheme for Scottish residents on April 1st 2015.

To qualify you must have few valuable assets - see 'Do I qualify for MAP?' for more information.

Once your MAP bankruptcy is agreed, you'll be discharged after six months at which point all remaining unsecured debt is written off. Then subjected to credit restrictions for a further six months. For example, you can't borrow more than £2,000 without telling the lender you have been made bankrupt, and you can't hold certain job roles (such as director of a company). Records of your bankruptcy will appear on the Individual Insolvency Register until three months after your bankruptcy has ended.

However, your credit rating will be affected, and it could be more difficult to borrow money or open certain types of bank accounts.

Learn more about MAP here.

Am I eligble for MAP?

You may be able to apply for bankruptcy through MAP if:

  • Your valuable assets come to no more than £1,000 individually (except a car, which can be worth up to £3,000 if it's essential), or £2,000 in total
  • You do not own, or jointly own, a property or area of land
  • You have no way of repaying your unsecured debts in full in a reasonable period of time
  • Your unsecured debts have become completely unaffordable or you've been on a benefits based income for at least 6 months
  • You have a debt level between £1,500 and £17,000
  • You have not been bankrupt in the last 5 years or if you have been bankrupt under MAP you cannot apply again for 10 years.

If you're still not sure whether MAP is right for you, call 0161 667 2599 to discuss your options with one of our friendly debt advisers.

See if you can qualify for MAP here.

What debts can be included in MAP bankruptcy?

MAP bankruptcy writes off unaffordable unsecured debts - things like personal loans, credit cards and overdrafts. It can't write off secured debts (such as a mortgage) or things like court fines and student loans.

However, tackling your unsecured debts this way should mean your other costs become affordable - so, in that sense, bankruptcy does help with all your debts.

How long does a MAP bankruptcy last?

You'll be usually be automatically discharged after six months and subject to certain restrictions for a further six months.

How do I apply for MAP bankruptcy?

To apply for MAP, obtain the correct forms to fill in, and send these along with a £90 application fee to the Accountant in Bankruptcy (AiB). The fee can be paid over four instalments, if necessary.

You can only make an application after speaking to a recognised money adviser. Our expert advisors can help you get started. They'll also let you know if any other debt solutions may be more suitable in your circumstances. Call us on 0161 667 2599.

What if may circumstances improve after an application for MAP has been accepted?

If your circumstances change in the 6 months prior to your automatic discharge, the MAP would transfer into the full bankruptcy process and be extended, normally to 12 months from the date the MAP was accepted. You would be expected to make payments based on the amount left over from your income after your essential bills and expenses have been paid.

MAP advice

Could we have a joint Trust Deed?

If you have joint debts that you can't afford, you could both enter into a Trust Deed. Although joint Trust Deeds don't exist, both your Trust Deeds will take your joint debts into account.

Read more