MAP Debt Solution

A Minimal Assets Process or MAP will write off debts that you cannot pay within a reasonable amount of time.

What is a MAP?

It is aimed at people with a low income and not many assets and is cheaper and more straight forward than sequestration or full bankruptcy. You can only apply for a MAP through an approved money adviser and you will need to pay a fee of £50 (reduced from £90 at least until the end of September 2020) to the Accountant in Bankruptcy. This can be paid in instalments, but the full amount needs to be paid before you can apply. The fee may be waivered if you receive certain benefits. To qualify you must meet the following criteria:

  • Your income must be solely made up of benefits or you must have no surplus income to make a contribution once you have paid your essential living costs
  • Your debts are more than £1,500 and less than £25,000 (increased from £17,000 until at least the end of September 2020)
  • Your car is worth £3,000 or less
  • Any other assets are worth less than £2,000 with no single item worth more than £1,000
  • You are not a homeowner
  • You haven’t been made bankrupt in the last 5 years

Benefits of a MAP

  • A MAP usually lasts for 6 months however if your circumstances change or you do not comply with the terms this may be extended
  • Debts will be written off once the MAP is discharged
  • Creditor contact will stop once the MAP is in place

Considerations of a MAP

  • Once the MAP is in place, you are bound by formal insolvency proceedings and your credit rating will be affected
  • Your details will be recorded on the Register of Insolvencies
  • While during the MAP and for a period of six months after you cannot borrow more than £2,000 without declaring you are bankrupt to the lender
  • Your employment could be affected, and you are unable to act as a company director