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How does MAP bankruptcy work?

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How does MAP bankruptcy work?

If you have few valuable assets and have unsecured debts you simply cannot afford to repay, MAP (Minimal Asset Process) could offer you a form of bankruptcy with lower fees and lasting for a shorter time than full bankruptcy. MAP replaced the previous LILA (Low Income, Low Asset) scheme on April 1st 2015

You'll usually be automatically discharged after six months - at which point all remaining unsecured debt is written off - and then subject to certain restrictions for a further six months. Your credit rating will be affected in the short to medium term and it could be affected in the longer term.

What's the difference between MAP and normal bankruptcy?

MAP is designed for people with few valuable assets who have no money left out of their income to make payments to their lenders. It has a lower application cost (You’ll pay a £90 application fee to the Accountant in Bankruptcy (AiB)) and a simplified process compared with full bankruptcy and lasts for 6 months instead of 12.. You'll normally be automatically discharged after six months, at which point all remaining unsecured debt is written off. Then you’ll be subjected to certain restrictions for a further six months.

Is MAP right for me?

It depends on your circumstances. You may qualify for bankruptcy through MAP if:

  • Your assets (valuable belongings) are worth less than £1,000 each, or £2,000 in total, except a car (which can be worth up to £3,000 if it’s essential)
  • You don’t own, or jointly own, a property or area of land.
  • You are completely unable to repay your unsecured debts in full within 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 can say yes to the above and you genuinely can't afford to repay your unsecured debts in a reasonable timeframe, your bankruptcy is likely to be approved.

Who will know about my MAP bankruptcy?

Our lenders will each be notified about your bankruptcy by the Trustee. Bankruptcies are no longer advertised but all bankruptcies are recorded on the publicly available 'Register of Insolvencies'.

How much does MAP cost?

You will have to pay a £90 fee to the Accountant in Bankruptcy (AiB) when you apply. This can be paid in four instalments, if necessary.

How can I apply for MAP?

You can find out more about how to apply here, or find out which other solutions could help you by requesting a callback.

MAP alternatives

Ultimately, the right solution for you will depend on your circumstances. You can request a callback for a quick guide to the right solutions for you, based on your circumstances.

Some of the other debt solutions we provide include:

  • Trust Deed
  • Bankruptcy

If you'd like more advice, call us on 0161 667 2599 and one of our expert advisors will get in touch to talk you through your options.

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.

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