The MAP solution was introduced in 2015 and was previously known as the Low Income, Low Asset bankruptcy which essentially describes it’s qualification criteria. The MAP is the nearest Scottish equivalent to a Debt Relief Order.
The other type of Sequestration in Scotland is known as Full Administration Sequestration.
Bankruptcy has always carried a greater stigma to it, not just here in Scotland but through the world. However, there really needn’t be as many more people struggle with their finances and require its use to get control of their finances again, working towards a debt free journey.
Benefits of the Minimal Asset Process
- Most unsecured debts are included in MAP Sequestration
- You can apply for MAP when you have a total debt level of £25,000.
- Although MAP Sequestration is a formal legal process, you won’t need to appear in court
- You’ll usually be discharged from your MAP Sequestration after six months, after which most debts will be legally written off
- Once your MAP Sequestration is approved your creditors can’t chase you for payment or add more interest and charges to your debts, and they can’t take any court action
Risks of the Minimal Asset Process
- Your credit rating will be affected for six years from the day your MAP Sequestration begins
- Your bank is likely to close or freeze your accounts and you may only be able to get a basic bank account
- Sequestration can impact some jobs or may lead to termination of employment
- Some private landlords may evict tenants or not renew a tenancy agreement if you become Sequestrated*
- Some debts, such as student loans, court fines ad child-maintenance are not included
- If you are self-employed, Sequestration could make it harder to trade and obtain credit for goods and services
How has Coronavirus affected Minimal Asset Process Sequestration?
Following the coronavirus (COVID-19) pandemic, new legislation was brought in to change some of the MAP Sequestration eligibility criteria.
The Coronavirus (Scotland) (No. 2) Act 2020 has made some changes which, while small in number, are significant. These are:
The financial threshold of maximum debts owed has been increased from £17,000 to £25,000
The application fee to apply for Minimal Asset Process has been reduced to £50 and some fees has been waived for those on certain benefits
* The Coronavirus (Scotland) Act 2020 protects tenants in Scotland from any eviction action for up to 6 months.
Where to get MAP Sequestration advice
Many companies that advertise on Google and social media concentrate purely on Trust Deeds as opposed to alternative Scottish debt help solutions including MAP sequestration and the Debt Arrangement Scheme for arguably self-motivated interests. This may seem like it’s more difficult to get qualified advice and assistance in applying for MAP Sequestration.
At Trust Deed Scotland® we’ve always aimed to offered Debt Help in Scotland that is transparent, balanced and we’ve always put our clients at the forefront of the decision-making process. As such, we have our client’s best interest at heart. If you want to discuss your options, you can always find non-judgemental, confidential advice from us. Contact Trust Deed Scotland® today on 0141 221 0999.
You can also get free MAP sequestration advice from organisations such as Money Advice Service, an independent service set up to help people manage their money.
Minimal Asset Process alternatives
When considering which option is best to help you manage your financial difficulties, you may also qualify for a Trust Deed, or you may be outwith the MAP Sequestration qualification criteria and therefore more likely need to apply for Full Administration Sequestration.
There may also the option to apply for the Debt Arrangement Scheme as your best way forward.
If you have reviewed your options for clearing debt in Scotland and found that the only solution that can help you is in fact MAP Sequestration, then don’t be put off this applying for this solution as they exist to help people with the severest of debt in Scotland. In the years 2018-2019 and 2019-2020, just over 3,800 Scottish individuals were declared bankrupt each year. Of this figure, just over 2,000 were awarded Minimal Asset Process bankruptcy. You are not alone.
In 2018-19 there were 7,915 registered Protected Trust Deeds and this rose to 8,743 in 2019-20. Likewise, in 2018-19 there were 2,636 Debt Payment Programme applications received under the Debt Arrangement Scheme and 3,495 DAS Applications in 2019-20.
When weighing up your options, it may be possible to be coerced into considering one solution over another. That coercion may come from an unqualified debt advisor, or within your own social circles – or hearsay within forums and groups. However, although mostly well-meaning, the truth is that you should always first seek expert money advice from a qualified money advisor, and that way you will receive tailored advice that suits your own circumstances.
Call 0141 221 0999 today if you want to find out more about the advantages and disadvantages of MAP bankruptcy and alternatives.