Minimal asset process (MAP) bankruptcy

MAP bankruptcy is a legal process that writes off most of your debts. This means you do not have to pay them back. You will not have to deal directly with the people you owe money to, known as your creditors, once you are bankrupt.

It can give you a fresh start if you are finding it hard to pay back what you owe.

People who are on a low income and have few assets may benefit from MAP. It is cheaper and simpler than sequestration (full administration bankruptcy).

Find out more about our free debt advice service in Scotland

Is MAP bankruptcy right for me?

MAP bankruptcy is a form of insolvency. Insolvency is a legal process to get your debts written off, which means you will not have to pay them back.

You can apply to make yourself bankrupt, or the people you owe (your creditors) can apply to make you bankrupt if you do not pay them what you owe. This is not something that happens overnight. There are many steps that must be taken before you are declared bankrupt.

There are lots of ways to deal with debt besides bankruptcy. It is important to get debt advice first so you can see what options are open to you.

Debt free after six months

Six months after your MAP bankruptcy starts, your debts are written off. This means you will have a clean financial slate, and you can start to recover your credit file.

We deal with the application

We will take the stress away. You will have a dedicated case manager who will manage your application.

There are no fees

You will not pay a fee to go ahead with MAP bankruptcy. We also do not charge fees for our service.

Protection from creditors

Once your MAP bankruptcy has been awarded, your creditors must stop asking you for payments. They are also not allowed to add more interest and charges to your debts or take court action against you.

Benefits of an approved MAP bankruptcy

• Debts are normally written off after six months. You will not have to pay them back
• You are protected from creditors. They cannot chase you for payments or take court action. They cannot add any more interest or charges
• Most debts can be included in a MAP bankruptcy. There are some that cannot be included like TV license arrears, court fines, student loans taken out after 1998 and fraudulent debts
• We deal with your application. So you don't have to stress about the process
• A 'trustee' will deal with your creditors when your application is approved. You will be supported through the whole process
• You do not need to appear in court

Risks of an approved MAP bankruptcy

• Bankruptcy will show on your credit file. It will stay there for at least six years, but it can be extended
• You could be asked to pay monthly amounts for four years. This happens if your situation gets better within six months
• You may find it harder to borrow money in the future. There are some restrictions for people who have gone bankrupt
• Your job may be affected. This usually only applies to certain types of jobs, like ones where you are responsible for handling money
• You could lose any assets or lump sums of money you get. This applies for up to four years after your bankruptcy is approved
• Your bankruptcy will appear on the public Register of Insolvencies. This usually lasts for at least two years. It could be longer if you are not discharged within six months

How do I find out if MAP bankruptcy is right for me?

1. To find out if bankruptcy is right for you, you will need to start by using our online debt help tool
2. We need to learn more about you to give you advice. Through our online tool, we will ask you for details about yourself and your situation. This includes basic information about you, as well as information about your income, spending and debts. This can be a long process, but you can pause and come back at any time
3. From the information you gave us, we will give you options on the best ways to deal with your debt. Make sure you read this through before making your choice. You may even be able to apply for debt moratorium. This will give you a break from having to worry about your debts while you get things sorted
4. If MAP bankruptcy is right for you and you choose to go ahead with it, you will be assigned a case manager. They will support you with your application. When you choose to go ahead with MAP bankruptcy at this stage, it does not automatically make you bankrupt. There are several steps still to take after this stage
5. When your application is complete, your case manager will submit your documents to The Accountant in Bankruptcy (AiB). Your bankruptcy will then usually be awarded in five days after it has been submitted

Common questions about MAP bankruptcy

About StepChange Debt Charity Scotland

We help hundreds of thousands of people each year across the UK.

In our Glasgow head office, we have expert teams of advisors who specialise in giving free debt advice to people living in Scotland.

We are an approved organisation for providing advice and managing Scottish debt solutions.

We also campaign on your behalf to make changes to law and policies. We use the real experience of our clients to drive home the need for change. Read our latest 'Scotland in the Red' report.